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Maksim Bober
Maksim Bober

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Temperature, BTC price and crypto farm earnings

I'm following work of Stephen Wolfram and I got excited by his idea of a computational essay.

I'm also into crypto trading, so I'm always looking for ways of creating some alpha over other crypto-traders (speculators 😋). One of the ideas that made intuitive sense to me was to use temperature at locations of crypto-farms to generate a trading signal somehow. Thus, I decided to explore this idea through a computational essay that you can view here. Sorry, dev.to does not support embeds from Wolfram 😢.

TLDR:

  • There appears to be some relationship, at least sometimes. Note, the influence from news (Elon twitting) seems to be influencing crypto much stronger than any of the temperature highs or lows at crypto farm locations.

How to profit from it (likely loose money fast)? 🤑

  • Global Energy Forecast offers a free API that allows to see Heating Degree Days and Cooling Degree Days for any location in the world. Essentially, it's theoretically possible to use it to forecast energy usage for any location in the world. For example, high HDD might force crypto farmers to go offline since electricity companies prioritize residents. So this might negatively affect BTC price, so you might use Kraken Short to try to make money on it (likely loose).

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