On the Di‐vi‐nation of Swan Bitcoin Mining - jalToorey/IdealMoney GitHub Wiki

Rheomode: Di-vi-nation

Recall our rheomodic construction for `to divinate'

Dividation:

Building on "di-vidant," dividation could represent the process or state resulting from this act of perceiving division. It's not just the act of dividing but also the ongoing state or outcome that results from this division. This could refer to the tangible division of objects, but in a more abstract sense, it could also refer to the societal, psychological, or philosophical divides. Divination:

While traditionally associated with foreseeing the future or gaining insight through supernatural means, in the context of rheomodes, we could dissect it further.

Di-: As before, representing division or duality.

Vi-: This could be seen as a variant or derivative of "vidate," again relating to seeing or understanding.

Nation: In a conventional sense, this refers to a large group of people or a territory. But in rheomodic terms, it could symbolize a collective concept or a large-scale manifestation of ideas or principles.

Therefore, "di-vi-nation" in a rheomodic context might be interpreted not just as foresight or prediction but as understanding or perceiving the underlying divisions or dualities within collective human experiences or societal constructs.

When we piece these interpretations together, we construct a nuanced view of how division, perception, and collective human constructs interact in our understanding and language. The rheomodic approach allows us to delve deeper into these concepts, providing a richer and more interconnected understanding of the words and the ideas they represent.

The Perfect Bitcoin Allocation

From The What Bitcoin Did Podcast Episode The Perfect Bitcoin Allocation with Raphael Zagury

RZ:

….the 1% fee again which again doesn't make any sense no one at least not where I saw no one guessed that we were mining and it's the only obvious answer

…we've been thinking about okay and even before…. Cory has been thinking this for a long time it's like how do we, if we want to be longterm, we want to be a Bitcoin only company right and we want to be around, what else we need to do…?

part of it came from our planning but a lot of it came from our clients

I think one of the biggest advantages that we've had for building the brand and being around is that we talk to people from all kinds of different fronts right investors, people that have companies, and it very quickly became clear to us that we had two different sides here that we should start thinking about how to put together

Bitcoin mining space you know mining facilities exchanges all software all kinds of different things in Bitcoin people coming to us and then we also had investors there stacking stats buying Bitcoin with us and just like you thinking okay so what's going to happen in a Bitcoin standard right can we get things that going to have rois or better than Bitcoin or at least they're going to diversify that maybe you know in periods where Bitcoin is not going up but it's still Bitcoin related…

… this is a core of investment banking right you have assets that want liquidity that wants to go somewhere and you have these opportunities. So we started looking at a couple of different opportunities right and at the time we didn't know that it would become Swan institutional

…because we were looking to invest purely as an investment passive investment going there putting Capital helping them raise their series A…and by looking and doing due diligence on the company a few things were super interesting

The first one…the price of the ASICSs were like a historical low…for an s19J Pro which are typical machines….were like in the low teens.

if you look at chart these were machines that were being priced at like 100 or 100+ six nine months before that right so again the same way I think that you know Bitcoin triggered me when I saw that it dropped from 1,000, to 300 when I look at that just as a pure trade it really caught caught my attention

…the second one was there were a lot of hosts out there that were suffering because CSUS went under you know all these mining companies went under that had machines just left and they had all the space Power available right they needed people to go in there and just get that and so we look at these things said okay….

…when we started thinking about having the mining day we weren't even thinking about Mining and this all happened like super super fast so I thought that raising the capital was going to be extremely challenging and it's never easy but it wasn't hard we raise the capital and then with that okay so now we have to think about the mining strategy what are we going to do

we're just going to buy the machines and wait for prices to go up yeah maybe we'll do that let's order some machines right so we order some machines and then as the machines came in like uh you know just started making I love as you can figure out I love making all kinds of simulation spreadsheets models right so a great models I'm looking at like and if we just deploy these machines even if it's not really cheap electricity we can start making a lot of money right so we started deploying some machines and then the investors saw that you know cash flows are coming in…

…we give transparency on everything so we have a dashboard our mining dashboard which is the one we use to control the sites that they have access to the same dashboard that we have so which again there are good things and bad things about that the good part is that they saw the cash flow coming they saw the Bitcoin addresses right and again beauty of Bitcoin right they can actually literally track the address see what Bitcoin how much being Mined.

Peter W Mac:

_ Riot's facility and I've I've seen them building I mean it's almost like a production line you have a uh one building that's completely done and full of as6 and hashing you got the next building that like you go in and they're still just doing the wiring and the next one's like the and it's like this production line of buildings that are basically Asic production, sorry Bitcoin production facilities, right this these take time they do so like I I I still can't get my head around how you deployed it so quickly_

RZ:

…so the difference between what Riot does and what we did something that is similar to what marathan did so we don't hold we don't own our infrastructure right now so there are people there are some companies out there that all they do is build infrastructure right so they were they had access to cheap power right so they built a storage facility at the size of cheap power and Bitcoin miners would come in and would rent these rent these facilities right and all of these guys that did that and these are usually in smaller scale but there's some large ones right uh all most of them were suffering because there was massive demand in the boom Market all of them overbuilt…

because some of these they would pay long-term contracts for energy they need to have somebody they hashing right and for most of these we got with them and said okay so here's what we're going to do, let's say you're getting 5 cents energy, you're going to give us the 5 cents energy, so it's pass through, but we're going to share some of the upside, so when we mine one Bitcoin we're going to give, I'm making this up, we're going to give you 0.1 Bitcoin for you right you-derisk both sides

you align the interest so that you make sure that if they have up time it's great for them they don't want to see their facilities down right so they're 100% interest in make sure that most of the ASICS that we have there are hashing as efficiently as much as they can because otherwise they won't get paid right uh so this was also another thing that actually really helped us uh a lot to to deploy um so again we were lucky in a sense that we're very lucky

so the there's no magic here this is another machine…mining is also a speculative attack on the dollar… raising capital we're getting the capital, people don't like to say this right but that's what it is you're getting fiat right and you're transforming fiat into Bitcoin may lose money in the meantime right but that's what you're doing if you pay too much for the cost of Capal you're going to go under if pay too much of machines are going to go under if you pay too much energy you're going to go under right so you have to manage all of these things appropriately luckily at the time that we deploy this uh again it's a little bit of luck but also not like as we were doing the due diligence on this company