YouSaid · the spoken record

Harry Sudock

lines on the record: 68
first: 2023-03-01
most recent: 2023-03-01
sittings or episodes: 1
sources: podcast

Every line below is reproduced as it was said and linked to the record it came from. Nothing here is summarised or generated. Directory · Search · Corrections

“I'm very hesitant to kind of overanalyze it. I think right now one of the best, you know, and this goes for politicians, this goes for large companies, this goes for sort of everybody is that there's a huge asymmetry. And the asymmetry is that Bitcoiners are a rabid, either voter-based or fan base or customer base. And we're very cheap to capture right now because we've been fighting against people who hate what we work on for so long that anybody who looks like they might like it were very innocent in doe-eyed and ready to believe. And so I think, do I think that Shell stands to enormously benefit from Bitcoin? Yes. Do I think that everybody stands to enormously benefit from Bitcoin? Yes. And so I think this is them taking, you know, a hedged position on Bitcoin as a constructive business line for their activities. I think that sort of, to be more specific, I need produce fluid that others have used in emergent environments. They have enormous.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We know about the same amount. And you have to educate me as much as it's. I know sort of the fedimate process is this chamian minting. That's about as much as I know. Help me help you.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“So I think from the mining perspective, the good news is that all the miners are heavily incentivized for Bitcoin to succeed because they've bought all of these applications specific computers. They can only mine Bitcoin effectively. And so anything that's a threat to kind of the long-term viability of Bitcoin means that they're not going to ROI their hardware or they're not going to be able to pay their palette contract. If there was some sort of fundamental disruption to the revenue engine that powers the mining businesses, I would love to see more tools competing for hash rate or more businesses kind of bolting on. Well, you know, we've seen Binance take a stab at some of this. We've seen others take runs at growing Bitcoin pools sort of in differentiated ways. I think we're going to continue to see innovation there. But I think fundamentally, if you're facing a state actor who's interested in gaining leverage over the mining space, I think that the energy.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think that it's kind of regulatory capture tail as old as time. Country's done is they've invested in significant kind of SOCS compliant process and audit controls, all this stuff that if you were to be a U.S. public company, you'd want to be able to point to a vendor. I think we just saw sort of very publicly, I know Riot left slush. And the reason they did that is because number one is that there's a different payout structure at different pools. And number two is just like it's really, really easy to just get a big SOC support from perjury and be able to say, look, they did all the things. They did it the right way. You're able to calculate every single hash rate share over the entire year and hand it to your accountants and say, this is exactly what we did. This is exactly what we got paid for. And we're adhering to all of the US GAAP compliance standards.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“As The first of the privacy incentive. So, right now, the way that Stratum V1 functions is it's basically like leaking a bunch of plain text over the internet. And so there's no native encryption to the packets. Miners want to be more private or want to have an ability to not sort of leak their internet behavior all over the place. We have an incentive just to make ourselves more secure with 7B2. It's the same thing with encrypting email.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Group of rigs think of the internet structure, right? Right now, the pool is taking the IP role, and then they're the internet provider of the hash. And then what we as the miner kind of take on would become almost like it's like adding a VPN to an iPad every single sort of nodal relay or endpoint becomes sort of the origin, the origin point for that transaction inclusion.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Technical, but the way that the pool process works is that the pool builds templates and sends us templates. This is all happening very quickly over the internet. But the pool bill of the template sends it to us. We look for a block of transactions that satisfies that template. We send it back to them and then they propagate that out to the network. What Stratum V2 would do is it puts the template construction into the miner's hands and the pool basically becomes hash coordinating layer and a profit smoothing and distribution layers. It takes some of the sort of the onus of transaction inclusion right now the pool takes lead takes on the onus of transaction inclusion. Strategy two would push that burden back onto the individual miner contributing the hash rate even though you're contributing it to a pool.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I think that there are technical and market based opportunities for businesses to peel off some of that hash power. I think from a sort of low-hanging fruit, I think that being able to forward sell hash in a different, whether it's derivative contracts or structured hedging or whatever, I think that there are going to be more venues that offer more products in exchange for hash rate. Right now, the best place to sell hash is to a pool. There may be another place that wants to buy hash in the future. And so I think that there could be some emergent environments that incentivize miners to spread their compute productivity into different venues. I also think that, and we don't need to go down the strategy too rabbit hole today, but I think that there are really strong technical reasons to introduce different design criteria to the pool dynamic right now. And forgive me for getting.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Wrist start to happen at the pool level, that being said, I don't think 30 plus percent of anything happening with any single dinner party in this Bitcoin. We try to eliminate trusted third parties here.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I don't mean to parse your answer too much, but I think I live at the poles of this. I think on the one hand, the mining school business is like negative, negative some, right? So it's a lost leader for a lot of these businesses. I think, you know, and Pool likes to sell ASICs. And so they're affiliated with BitMain. So they like to lose money on the pool. And I think Foundry has a broad range of services. And so they like to break even or lose money. I think it's very, very hard to build a world beating business by running a Bitcoin mining pool. I think it's very hard to lock in a miner. It's very easy to kind of transfer between them from a technical perspective. For me to move from Pool A to Pool B. There's very, very low friction and low switching costs. I think the market's able to punish a bad actor very quickly if we were to see some emergent centralization.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“I don't have the numbers to support a firm data point. Futures orders that we've seen over the last 18, 24 months seems like those were bought by U.S. companies who are getting plugged in at U.S. farms.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Think America is still the best place to be plugging in Bitcoin lenders. And I think that's been the story. I think there's some, I've heard some speculative stuff around, you know, it's the only way to kind of export Russian energy during an era of sanctions. I think some Chinese operations are probably back online after periods of being off due to government oversight. I think South America is a growing Bitcoin environment. But I still think that capital formation and infrastructure development is happening the fastest in the US”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“We've seen that in the form of some highly publicized bankruptcies. We've seen that in the form of some MA activity is my guess. What I think we're going to see continue though, and that's kind of sitting below the surface is that let's just say you didn't raise debt and you raised debt with you to do that. The capital destruction remains. You still sold $100 of shares to buy a machine. You only have $15 worth of asset left. This dynamic of correlation between the ASIC and the underlier being Bitcoin, that relationship is going to be a continued kind of wait on cap cables, even if it isn't a weight on income standards.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Maybe not obvious, not immediately obvious ways. So if you borrowed $100 for an ASIC, you expect that ASIC to generate at the time it was generating 40 cents a day in revenue. Now it's generating eight cents a day. And so you're seeing that destruction both in terms of the productivity of the asset, the value of the asset. And the halings only coming sooner. you're facing these kind of headwinds then you layer on the fact that energy prices doubled or tripled for most floating markets. And that's an enormous squeeze that's going to put that's going to put unprecedented pressure on any business. And so I think we saw that happen across much of the mining sector. That was the nature of the squeeze. I think we've rung a lot of that leverage out of the system.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“Would split your question into kind of two categories. The first is that do I think that monthly income statements are going to be devastated in the way they were a quarter ago? I don't think so. I think that the unit economics have significantly improved for most miners. But the capital destruction remains. The reason that there was so much pain was that people raised credit and plowed that into $100 per terahash machine then saw that value get crushed 85%. The debt service still remains. The debt service doesn't care that the collateral was repriced down. The squeeze on the business really is in the form of interest and amortization, not in the form of, I don't know, the network variable. The pain that we've seen is a function of the fact that the whole market was heavily correlated to Bitcoin in unusual and”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“For those of you who are used to looking at charts, you get a 200 or a 400 day moving average. And I really think there's sort of a two to four year kind of trailing async efficiency average where those S9s that are running at 100 joules per terahash start to roll off in a market environment like we saw the back half of last year. And the S19 XPs coming in at 21 watts or joules per terahesh, those are rolling onto the front of the average. And so you're seeing kind of this progression down the efficiency curve as an industry. So I think that process of rolling off of the lowest efficiency and rolling into the highest efficiency is going to be a big story over the coming, I don't know, 12 or 24 months with the other component to that is how much more efficient can the manufacturers get? Open question. So we may be, you know, we may be flat.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“And I think the larger story really is sort of the energy side of things. The reason that we're seeing this hash rate come online is number one, it was bought and paid for. These are the orders that were paid beginning of 22, end of 21, kind of continuing to round into form. The infrastructure projects that are housing these new machines took a long time to build. And I think the folks who are kind of still up and running in this market are going to be able to see it through and grow hash rate. But what we've seen in the price of electricity is that it's finally come off and that the combination of the 30, 40 percent reduction in the price of natural gas and the 20, 30, 40 percent increase in the price of bitcoin added a lot of breathing room for everybody who was squeezed towards the end of last year. And so, you know, to me, it makes sense that we'd see kind of hash rate climate. I think Isak inventories remain robust.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT
“You having me, man. It's always fun to kind of loop back with healthy sort of bit of hindsight and perspective on the roller coaster that was the vast majority of last year.”
2023-03-01 · We Study Billionaires · BTC119: Merging the Energy Sector with Bitcoin Mining w/ Harry Sudock (Bitcoin Podcast) · IDENTIFIED FROM THE TRANSCRIPT