This is the second part of the Short STOry Academy lecture on the economics of Bitcoin mining, including the analysis of what will be happening to miner profits and the hash rate.
Halvening is coming up and there seems to be a lot of confusing around what this will be doing to Bitcoin, and in particular the hash rate. On first sight this indeed looks like a complex problem, because the bitcoin mining community is a complex system, and the difficulty adjustment introduces a feedback loop the impact of which can be somewhat hard to understand. Fortunaly microeconomics has just the toolkit we need, in the form of the supply/demand analysis, to cut through all this complexity and to understand what will be going on.
Today’s big news in the crypto space  is that Paul Tudor Jones – the famous hedge fund veteran – has a published a letter to his investors where he is very open about changing his investment mandate to be allowed to invest into BTC futures because of the current unprecedented macroeconomic environment. I will talk here about the “futures” part which involves a discussion about institutional custody