Oddbean new post about login | logout I dislike discussions of Bitcoin and the power required to secure the network. If it came down to it, the whole network could be secured by a single solar panel! The issue is there is always going to be competition to get the block rewards, and the only way to get a higher chance of ‘winning’ is to have a more efficient mining device or larger number of mining devices. More mining devices results in more energy being used. The energy use issue is down to greed for block rewards. Or am I completely wrong in my understanding? #bitcoin #mining #energy
I think it’s helpful to think of that lone solar panel as being a vulnerable military or political target, and instead figuring out how to get miners in every jurisdiction.
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I guess it all comes down to the value of Bitcoin itself, which is broken down into its constituents. For example: - price of mining equipment - price of energy - value of the ideology If you can get all the items for less than market price, then mining Bitcoin is worth it. I expect once we get to a certain block reward, the value of the ideology will need to go up
It’s possible that the difficulty adjustment will always make it worthwhile for tons of people to mine
Mining scales up as bitcoin price goes up Difficulty adjustment occurs to keep a 10 minute block speed average Simple balance
Yes, So what are the individual price variables for bitcoin? - energy cost - equipment cost - bitcoin principal What other things drive the cost of Bitcoin?