Topic: Bitcoin Will Eat the World - page 2. (Read 352 times)
It's amazing what friend say about mining and the use of electricity for mining is of course very special if that happens, but we know that not all will be interested in bitcoin mining. because maybe also the risk of mining is not easy and it must be taken into account in all aspects before you really want to mine.
That implies that at that price, all of the electricity in the world will be devoted to mining bitcoins.
Necessity is the mother of invention.There were electric companies that weren't producing as much electricity as today but now they've got contracts with mining farms to produce and provide them with agreed upon amount of electricity every day.
If the incentive keeps growing, there will also be a lot more innovation in production of electricity and more efficient and green ways of producing it will emerge or the existing ones will grow. The same way different ASICs emerged throughout the years (SHA256, scrypt, Keccak).
Also if we are producing 26-27 PWh of electricity today, that's because the world needs this much not more.
It is possible somewhat, the cost overtime of power production is decreasing thanks to the revolutionary renewable energy sources and a more safe nuclear energy, I think that the power generated annually will not overtake everything that we do. With renewable energy, I think that the price of mining will go down, not to mention that the mines are getting closer to the sources which drastically change the amount of money spent on power. The only reason that it becomes possible scenario is that each blocks gets progressively harder to mine which could be solved via quantum computing.
The difficulty increases steadily. This means that some of the electricity may be needed to create new miner hardware.
Also not all the electricity in the world is sold at 0.10/kWh and the supply vs demand will kick into action big time when Bitcoin mining will want to take over electricity which is not surplus.
So imho in order to "eat the world" Bitcoin will have to become much more expensive than in your calculations.
Also not all the electricity in the world is sold at 0.10/kWh and the supply vs demand will kick into action big time when Bitcoin mining will want to take over electricity which is not surplus.
So imho in order to "eat the world" Bitcoin will have to become much more expensive than in your calculations.
Love it!
It looks like madness but it isn't.
All those machines "working" all day and no work being done. Even when work is done (finding a block) it's not work work, it's virtual work.
It looks like madness but it isn't.
All those machines "working" all day and no work being done. Even when work is done (finding a block) it's not work work, it's virtual work.
then the cost of mining will approach the value of all the electricity produced in the world at about $8 million per bitcoin.
Here's a flaw in your assumption: it took Bitcoin 8 years to barely touch 20 thousand dollars. How long do you think it will take before we reach 1 million and then 8 million. Maybe years, maybe decades. By that time there may be a large surplus of electricity in the world and the cost of it may be much lower.
10 years ago you could find solar panels on boats and RVs now they're on roofs of many private residences. 10 years ago I had a normal phone that did not even have a touch screen and now my phone has 8 core cpu and records hd movies. A lot can change in another 10 years.
There is an apocalyptic scenario in which Bitcoin eats the world. In this scenario, a bitcoin becomes so valuable that no other activity is worth more than mining bitcoins, and all the power and resources in the world are devoted solely to Bitcoin mining.
I am interested in exploring the ramifications of this scenario and the conditions necessary to reach it.
The economics of mining dictate that the cost of the electricity necessary to mine 1 bitcoin approaches the value of 1 bitcoin. Therefore, if 328500 BTC is mined each year (6.25/block) and 26 PWh of electricity is produced each year with a value of $2.6 trillion (at $0.10/kWh), then the cost of mining will approach the value of all the electricity produced in the world at about $8 million per bitcoin. That implies that at that price, all of the electricity in the world will be devoted to mining bitcoins.
Note: this is a moderated topic. Off-topic replies will be removed. I'm not interested in price speculation and unsupported claims.
I am interested in exploring the ramifications of this scenario and the conditions necessary to reach it.
The economics of mining dictate that the cost of the electricity necessary to mine 1 bitcoin approaches the value of 1 bitcoin. Therefore, if 328500 BTC is mined each year (6.25/block) and 26 PWh of electricity is produced each year with a value of $2.6 trillion (at $0.10/kWh), then the cost of mining will approach the value of all the electricity produced in the world at about $8 million per bitcoin. That implies that at that price, all of the electricity in the world will be devoted to mining bitcoins.
Note: this is a moderated topic. Off-topic replies will be removed. I'm not interested in price speculation and unsupported claims.
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