E=m*btc^2 ? - page 2. | Bitcointalksearch.org

virtualmaster

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Quote from: mokimarket on April 21, 2013, 06:30:09 PM

I may be wrong but is bitcoin the first example of a currency being directly related to energy consumption?

The currency value depends on a distributed network that depends on miners that depends on energy. Seems to me that as bitcoin becomes more accepted this relationship will become more important. Any others concur before I spill my guts on the possibilities?

How much energy use banks for their luxurious buildings ?
How much energy is used to build a skyscraper where resides a bank ?
How much energy is used to print fiat money ?
Only if you know this values also can you say which one is more energy efficient.

mokimarket

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I see a direct link between energy and currency pretty revolutionary.

Take the problem of negative pricing at certain power nodes, due to the power on the grid constraining the system, that generators will pay a counterparty to take the power the plant is generating.

Suppose you have setup next to each generator a ton of bitcoin mining rigs, that can create "x" amount of btc per MW of generation provided. Generators can optimize their excess power by generating bitcoins with them which can then be sold.

Elwar

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Viva Ut Vivas

Quote from: mestar on April 21, 2013, 07:08:10 PM

So, when miners sell some bitcoins to pay for their electric bills, where does the money come from?

Their paychecks. Which are paid in government currency.

mokimarket

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Quote from: mestar on April 21, 2013, 06:51:45 PM

Quote from: mokimarket on April 21, 2013, 06:30:09 PM

The currency value depends on a distributed network that depends on miners that depends on energy. Seems to me that as bitcoin becomes more accepted this relationship will become more important. Any others concur before I spill my guts on the possibilities?

You mean the relationship where the bitcoin price creates a direct target of miners' energy usage, and in reverse, energy usage creates downward pressure on the price because miners have to sell to pay for the same energy usage?

Yes.

wopwop

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bitcoin's value is directly linked to energy consumption.

this has been discussed pretty extensively here by now and is regarded as a 'public secret' to 'bitcoin believers' because it has not yet been solved. It is more desirable to bitcoiners to not have this be well known as it is a huge design error.

mestar

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Quote from: bg002h on April 21, 2013, 06:58:43 PM

Bitcoin cares nothing for energy. If computation cost next to nothing in terms of energy,

You mean bitcoin can somehow suspend market forces? No new miners will join until it is no longer profitable to do so? How in the world is bitcoin going to do that, being a P2P network?

Quote from: bg002h on April 21, 2013, 06:58:43 PM

regardless of the electric bill.

So, when miners sell some bitcoins to pay for their electric bills, where does the money come from?

bg002h

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I outlived my lifetime membership:)

Bitcoin cares nothing for energy. If computation cost next to nothing in terms of energy, the price of Bitcoin wouldn't go down. Bitcoin is useful because it has a payment network attached to a mint and a bank and the equivalent of a secret service agent validating that every transaction is not counterfeit. The more computational power securing this whole process, the better, regardless of the electric bill.

mestar

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Quote from: mokimarket on April 21, 2013, 06:30:09 PM

The currency value depends on a distributed network that depends on miners that depends on energy. Seems to me that as bitcoin becomes more accepted this relationship will become more important. Any others concur before I spill my guts on the possibilities?

You mean the relationship where the bitcoin price creates a direct target of miners' energy usage, and in reverse, energy usage creates downward pressure on the price because miners have to sell to pay for the same energy usage?

lerelerele

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When you need industrial power this will be a problem for you if you dont live in the cheapest area.

mokimarket

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I may be wrong but is bitcoin the first example of a currency being directly related to energy consumption?

The currency value depends on a distributed network that depends on miners that depends on energy. Seems to me that as bitcoin becomes more accepted this relationship will become more important. Any others concur before I spill my guts on the possibilities?

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