Were today with the level at a winery and have made there 2h a tour and really everything was explained. The exciting thing for me, which I have always taken with Bitcoin in mind is:

Bitcoin mining is a self-regulating market. If a lot of new miners join (increasing hashrate), all miners practically earn less, because there is no more profit distributed just because there are more miners. That's why it's hard for inefficient miners to stay profitable, and if they don't do anything about that inefficiency, they'll be eliminated.

Another self-regulation in mining happens when prices fall. Since miners sell a large portion of their mined bitcoin to pay for their equipment/electricity, they are naturally dependent on the bitcoin price. If this is low, the mining companies naturally earn less. This also eliminates the inefficient/unprofitable miners and so the "survivors" get a bigger share of the pie again.

If the miners manage to remain efficient and profitable, then they survive this threshold at which unprofitable miners leave and then earn a little more again.

So now to the winery and what the boss told us there:

He himself says that due to the currently very high inflation of 7.9% a lot of profit has collapsed, because they can not completely pass on the sharply increased prices to the customer and so earn less themselves. He also said that real inflation is probably much higher than the official figures, since electricity, water prices and glass bottles etc. have become more expensive by far more than 30%.

Then he has so incidentally criticized the system that the market usually regulates itself (as in bitcoin mining) and they try to be more efficient and make savings to stay in the market. So normally the unprofitable vintners should leave the market which leads to it being more profitable again (has more of the pie then). However, this is not the case in reality due to government intervention, since unprofitable/inefficient winemakers are kept alive by strong government aid and subsidies and winemakers are still on the market that should actually no longer be on the market (those were his words).

Thus, the market does not regulate itself and he does not like that (I grinned because he spoke from my soul).

Furthermore, he complained about the European subsidies. Because although they all want to support smaller companies, the big companies get the subsidies in the end. This is also not good for the environment, because the small farmers are the ones who do the most for the environment (I have seen everything on the ground). Also, the big corporations have supplies from all over the world, workers for the lowest wages abroad and then they can still sell it in Germany as Made in Germany when it was bottled in Germany.🇩🇪

A little fun fact he mentioned is that Lufthansa gets the biggest agricultural subsidies from the EU although it is not even an agricultural company but only exports wine. This is the classic cantillion effect. Those closest to the printing press benefit, while the others (small businesses) bear the costs (e.g. inflation).😕

I knew all this before, since you deal with it a lot if you also deal with Bitcoin but it felt good to see the whole economic theory in reality for once. And that the state and the EU with their money actually do a lot of damage by keeping the zombie companies alive or by the enormous subsidies.🥴

Bitcoin fixes this😘