One step closer to Bitcoin permanent funds
The below is a direct extract from Marty’s Bent Number 1198: “One step closer to permanent bitcoin mining funds” Subscribe to the newsletter here.
It’s an encouraging sign, the city of Fort Worth, TX has started a pilot bitcoin mining project in their local town hall. The pilot may be small, with just three S9s collectively producing $3.39 in USD-denominated profit per day – assuming an electricity cost of $0.05 kWh and Braiins OS+ running on the machines. It may seem like nothing more than a marketing stunt, but I think it’s a very important signal that the city of Fort Worth sends to cities and small towns across the United States; bitcoin is something you should take seriously and bitcoin mining is something you should consider.
This looks like the first step of many more that will be taken on the way to permanent bitcoin funds appearing all over the country. Permanent funds that take advantage of blocked energy sources or excess energy is something that your uncle Marty defended since April 2021. Bitcoin provides small towns, cities, counties and entire states with a mechanism that can be leveraged to transform their wasted or underutilized energy resources to produce streams of sats that can be paid into dedicated permanent funds that have for the sole purpose of holding mined bitcoins. for an extended period of time, after which the city/town/county/state can begin deploying mined sats to fund necessities and reduce – or potentially eliminate – taxes. It may sound crazy, but it can also work.
A handy fruit that comes to your Uncle Marty’s mind is the orphan natural gas wells that are on land controlled by the local government. A permanent fund could be created by allowing a private sector miner to enter and take over the well for free, allow it to use the natural gas to generate electricity on site, operate that electricity and direct a small percentage of the sats flows into the permanent fund as a contribution to being able to take over the well. The local government wouldn’t even need to bother to become a miner itself.
It’s a way of doing it. Another way would be to take what El Salvador is trying to do with its volcanic connection and take it to the municipal level. Local governments could issue municipal bonds for the sole purpose of raising money to acquire mining equipment that would be used to capitalize on any stranded or wasted energy play, with bondholders being first repaired and mining operations contributing directly to the permanent fund after that. .
If I were a small town or state looking to attract talent, I would rush to create a permanent bitcoin mining fund that allows you to offer lower tax rates and show voters that you are avant-garde and innovative.
Kudos to the City of Fort Worth and the team at Luxor (who helped coordinate all of this) for pushing that ball forward. In time, my dream of a permanent bitcoin mining fund will come true.