 Thanks. So we're going to look at the global distribution of hash rate, how the development of ASICs led to hash rate being centralized like we see today, and how that trend has been changing in recent years. And then we're going to look at the long-term sustainability of Bitcoin mining and the interaction between Bitcoin and renewables. So if we look at the global distribution of hash rate today, we'll see that most hash rate is concentrated in China. In recent years, we've seen this trend reverse a little bit as miners have chased cheaper power and political stability in other regions in the world. One interesting thing to note about this is that miners have moved even to hotter climates as technologies like evaporative cooling and proper airflow management enable miners to operate profitably, even in hot climates. Bitcoin derives value from being able to operate without a centralized authority. And having too much hash rate centralized in any one place compromises its value proposition. So it's critically important for the future of Bitcoin that we see a globally distributed hash rate. And that means both having hash rate in the West and the East, having hash rate too concentrated in any single location means that investors from other parts of the world aren't going to be comfortable investing in that asset. And in order for Bitcoin to truly be globally valuable, hash rate has to be globally distributed. So in order to understand why we see such a concentration of hash rate in China today, it's helpful to look at the history of Bitcoin mining. So when mining started out, it was done on home computers, CPUs, people eventually wrote programs where you could use graphics cards, GPUs, and then more and more specialized equipment until people eventually made ASICs, which are specific computer chips made to only do one thing. And they made ASICs for Bitcoin mining. And when they did that, they originally used older underutilized semiconductor processes. So this allowed for rapid prototyping and rapid scaling, but led to a very quick generation cycle where a new generation of ASICs would come out every couple of months that would basically make all the rest of the ASICs obsolete. This meant that whoever had the closest access to manufacturers and have the best supply chain had a massive competitive advantage. And because most of these were produced in China, being located in China with close relationships to those manufacturers meant that you had a significant competitive advantage. Over time, those processes have caught up to the same processes that are used in mainstream computer hardware, phones, tablets, everything else. And with that, we've seen a generation cycle lengthen and we've seen ASICs become more commoditized. With a longer generation cycle, the game became less about who had the best relationship with the manufacturer and more about who had the lowest cost of operations. In today's era of Bitcoin mining, the most important things to consider are that prices volatile and that hash rate will follow price. Prices volatile in Bitcoin, that has been the case over its whole history. That's unlikely to change in the future, at least in the near term future. And any Bitcoin mining operation has to be able to weather low price environments because they will come. Hash rate follows price. This makes intuitive sense when price is high and incentives for mining are high, miners build out more mining farms. And conversely, when price is low and mining rewards are low enough, then higher cost miners are forced to turn off, which alleviates pressure on lower cost miners. So the key to mining profitably over the long term is having large scale, low cost power that enables you to be in that low cost miner category. If we look at the price of Bitcoin over the last decade, we've seen about five orders of magnitude of price appreciation. And with that, you see significant volatility. We've seen every couple of years, a 50 plus percent pullback in Bitcoin price. And I think that that trend is likely to continue into the future. So any mining operation has to be able to operate in those environments where you have a low price to where you're not one of the higher cost miners that's forced to turn off. We've seen a lot of mining projects that fail because they're forced to turn off when you get that sort of low price environment. This is a chart of Bitcoin price and hash rate. This is actually a seven day average of hash rate, which helps make it a little bit more clear where the trend is. It makes intuitive sense that hash rate follows Bitcoin price. This may not be immediately obvious when looking at this chart from a pure statistical standpoint. So you'll see that even though throughout 2018 Bitcoin price was falling, hash rate continued to grow. In order to understand why this is, it's really helpful to look at incentives to miners. So the primary cost for any mining operation is the cost of electricity. And other costs can be denominated in dollars per kilowatt hour terms. And so can revenue to miners. So the orange line here is a graph that uses 16 nanometer revenue. So this is using an S9 representing the 16 nanometer generation and an S17 representing the seven nanometer generation in the blue line. So this is looking at what are rewards to miners in dollars per kilowatt hour terms. And if we zoom in on this graph, what we'll see is that even though Bitcoin price was falling in 2018, mining rewards were still quite high. If we overlay hash rate with this graph, we'll see that it wasn't until mining rewards fell below about 10 cents per kilowatt hour that we started to see hash rate come offline. And we saw it come pretty quickly offline after that. So you can see, even though you have a pretty major drop in Bitcoin price, profitability doesn't drop by nearly as much because these lower cost miners are insulated by the miners that drop off. We've seen three major events like this recently. The first two were from significant drops in Bitcoin price, where we saw miners respond. And the most recent one was from the halving, where mining rewards were cut in half. And once again, miners dropped offline. What's interesting here is what you'll see is that as mining rewards fall, miners come offline. And conversely, as those mining rewards come back up, that hash rate comes right back online. So hash rate follows price. And it's important to control your cost of operations to be in that low cost category where you can be insulated by the miners rather than being one of the miners that has to turn off. The keys to achieving that low cost are cost of power and scale. Cost of power is the biggest line item in any mining operation. But there are a lot of other factors that are also important. And these also see significant economies of scale. So for example, a mining operation is going to need a security guard, whether it's 10 megawatts or 200 megawatts. But if you can spread that cost over more power, you can have a much lower cost of operations. Now, in order to enable large-scale mining, you need large-scale capital. And in order to have capital that is comfortable making large-scale long-term investments, that means you need to have institutional capital. And institutional capital requires institutional quality. This is something that wasn't even possible until recently in Bitcoin mining. With institutional custodians like Fidelity stepping into the space, it's finally possible to provide the security that institutional investors require. Projects also need to have a level of compliance, auditing, reporting that's appropriate for a large industrial business. And this is something that's been lacking in a lot of Bitcoin projects to date. And the third critically important piece here is location. And this doesn't just mean not investing in countries that have sanctions on them. There are a lot of Bitcoin projects that have failed because they went into areas where their supply of power was controlled by somebody who could simply vote away their power or vote away their cost of power. We saw that happen time and time again, where miners would come into an area. Some locals may be upset that there's a lot of electricity being consumed. But the power company might be upset that they might have to make some upgrades. And people's power could be taken away. So this is untenable for any large scale investment that's looking at making a significant size of investment over a five or ten year horizon. You need to make sure that you're in an area that's actively pro-business and where your power isn't simply controlled by one person or a small group of people that can take it away from you. To summarize here, there's really good reason why Bitcoin miners are chasing power in the West. With lower cost of power, it's possible to be competitive, both in higher price environments as well in low price environments. And this is crucially attractive. As well, political stability in the West allows miners to make longer term capital investments that pay off in the long run. Price is going to be volatile and hash rate will follow price. So the key to mining profitably is having that large scale low cost power. And the key to enabling that is having institutional Western capital. The second part of the talk here, we're going to look at the interaction between Bitcoin and power grids and the interaction between Bitcoin and renewables and the sustainable energy future of Bitcoin. So a quick overview on how power grids work. In any power grid, you have to have the same amount of power being fed in as taken out at any one time. If you feed in too much or too little power, you can burn out lines, you can damage equipment, and this can lead to loss of property or loss of life. So it's crucially important that grids stay balanced. Now, in the conventional model, what would happen is that you could not control demand as people would turn on or turn off devices as they had their own individual demands, but you could control the supply to match that. Renewables throw a wrench into this model where in addition to demand being variable, supply now becomes variable. There are some different technologies that you can use to help solve this. So from the supply side, the main technologies are peaker plants, batteries, and then supply side curtailment. So peaker plants are essentially power plants that are built to just run a few hours out of the year. These just are running to match, to balance the grid at those times when production doesn't match up to demand. The disadvantage of this is that you have to spend all of the resources and energy that's necessary to build a large power plant, and you only get to use it a small percentage of the time. So you have a very high embodied energy cost and a really low utilization. And one of the results of that is that in addition to having to spend so much energy on those plants, you can't afford to make the investments in fuel efficiency that you can in plants that run at a much higher rate. An alternative to this is batteries, but batteries are also incredibly resource intensive and lack the scale necessary to balance large power grids. The last thing that power grids will do from the supply side is curtailment of renewables. So when renewables are producing more power than the grid is willing to consume, renewables often have to be curtailed, which essentially means that the energy is just wasted. And this is both a waste of energy and lowers the returns of renewable projects. So a lot of renewable projects don't get built because they can't realize the economic value of the energy that they would produce. From the demand side, there's three different strategies for this, and this is sort of an order of preference. The best thing that you can do is have a controllable load. So a controllable load is a load that can change the amount of power that it's consuming based on the amount of supply that's available on the grid. So this allows you to match up in real time the supply and the demand on the grid. The next best thing that you can do is have a flexible load, which is a load where you can reschedule from one part of the day to another part of the day or from one day to another. Now flexible loads are limited in renewable grids because when you're looking to reschedule that load, you may be rescheduling it to a time where that power production may not materialize. So this limits the amount that you can do with flexible loads. And the final thing that grids will do is curtailment, which is essentially triage for power grids. So grids will shut off power to two different areas in order of looking at what will cause the least amount of damage and the least amount of loss of life. So this is a situation that you wanna avoid. There are some technologies today at large scale that will do this sort of flexible load, this grid balancing. So for example, there's an aluminum smelter in Germany that does this, but the development of renewables is limited by the amount of flexible capacity that we have with systems like this. So there are some other interesting ways that you can do this. One way you can do this is using computers. So traditional compute does this today. Processors can change their frequency and voltage in order to change power consumption. And tasks can sometimes be shifted from one part of the day to another part of the day where you might have more renewable production. The limitation of this is that most computing tasks today have to be served immediately. And when you're loading a webpage, for example, you can't just wait until there's enough sunshine or enough wind in order to load that page. So this limits the use of traditional computers as grid balancers. Bitcoin miners can also perform this same function. And some Bitcoin miners do this today. Now, the beauty of Bitcoin mining is that no single location is essential for the functioning of the network. Since you have this distributed network of miners, every single location has the ability to balance the grid where they are. As any location can shut down and the network will continue to function. Now, the limitation of this is that Bitcoin miners can only be used to balance grids that have low-cost power, as low-cost power is still the driving factor in Bitcoin mining. And another limitation on this is that the economic value of this curtailment or of this grid balancing is really limited to locations where you have significant amounts of intermittent renewables. So wind and solar. With those types of grids, you see a lot more variability in power production and that increases the value of this grid balancing service. To wrap up here, there's a great incentive for miners to move into the West. And the key to unlocking that is enabling large-scale low-cost power through Western institutional capital. A globally diversified hash rate is going to be critical for Bitcoin becoming a global financial asset. We see this trend today and this is going to continue in the future. If you have any questions or comments, feel free to reach out to me on Twitter. My handle is at Jesse Peltdown.