The Bitcoin Mining Trilemma with Bob Burnett

“We could think of the first 15 years of Bitcoin as an introductory period…in the next epoch, in this next halving cycle I think it will be over and I think the fees will start skyrocketing.”— Bob BurnettBob Burnett is the Chairman and CEO of Barefoot Mining. In this interview, we discuss his transition from the PC industry to Bitcoin and his passion for Bitcoin mining. Bob explains the complexities of mining, its potential future and the role of fees in sustaining the industry. We also talk about the scarcity of block space in the Bitcoin network, the importance of the Lightning Network, the early years of Bitcoin and the public’s current perception of Bitcoin.- - - - Bob Burnett shared his fascinating journey, from his work on developing one of the world's first laptop computers to his current involvement in the Bitcoin industry. Bob drew parallels between the personal computer and Bitcoin, emphasizing the role of technologists like Satoshi Nakamoto in pushing society forward and ushering in new eras, and the different motivations of technologists and capitalists. Bob initially designed Ethereum mining servers but eventually pivoted towards Bitcoin due to his dissatisfaction with Ethereum. He expressed his admiration for the technological brilliance of Bitcoin and the ongoing process of uncovering its layers. Bob shared his passion for Bitcoin mining, and his mission as a technologist and systems “guy” who wants to contribute to building a monetary system that will last for a thousand years. We discussed the intricacies of the Bitcoin mining industry. Bob explained the mining trilemma, i.e. the challenge of combining the three fundamental factors that need to come together to build a mining site: a consistent and competitive source of energy, mining equipment, and money. We also discussed the impact of changes to Bitcoin’s price on the mining industry, the importance of collaboration, the need for diversity and the dangers of monopolies.The podcast delved into the scarcity of block space in the Bitcoin network and its implications. Current block space is limited and cannot accommodate everyone who wants to transact on the base layer. This poses a challenge for individuals who want to store their Bitcoin securely and be self-sovereign. We covered the importance of Lightning Network as a solution to allow more people to access and use Bitcoin.Finally, we reflected on the early years of Bitcoin and the upcoming changes in fees. We also talked about the perception of Bitcoin among those who are unfamiliar with it, and the challenge of bridging the gap between what people think about Bitcoin and the reality. However, in terms of the famous saying “show, don’t tell”, it’s the efforts of people like Bob, working to serve people around the world, that will go a long way to enlightening people on the value of Bitcoin.- - - - This episode’s sponsors:Iris Energy - Bitcoin Mining. Done Sustainably Bitcasino - The Future of Gaming is hereLedger - State of the art Bitcoin hardware walletWasabi Wallet - Privacy by defaultUnchained - Secure your bitcoin with confidenceOrange Pill App - Stack friends who stack satsSwan Bitcoin - Invest in Bitcoin with Swan-----WBD746 - Show Notes-----If you enjoy The What Bitcoin Did Podcast you can help support the show by doing the following:Become a Patron and get access to shows early or help contributeMake a tip:Bitcoin: 3FiC6w7eb3dkcaNHMAnj39ANTAkv8Ufi2SQR Codes: BitcoinIf you do send a tip then please email me so that I can say thank youSubscribe on iTunes | Spotify | Stitcher | SoundCloud | YouTube | Deezer | TuneIn | RSS FeedLeave a review on iTunesShare the show and episodes with your friends and familySubscribe to the newsletter on my websiteFollow me on Twitter Personal | Twitter Podcast | Instagram | Medium | YouTubeIf you are interested in sponsoring the show, you can read more about that here or please feel free to drop me an email to discuss options.