Cambridge Bitcoin Electricity Consumption Index

Re:Cambridge Bitcoin Electricity Consumption Index by throwaway5752 on Wednesday February 10, 2021 @10:30AM (#26090449)

Maybe you can help me out, then? How does the network increase the transaction rate to current global rates (at least 10^4 higher)? What happens when the mining phase completes, or if there is a drop in value? What is a sustainable transaction fee for miners to take absent mining incentives? What happens over long periods of time from hardware failures where wallets are lost? It's probably my problem not researching well enough, but if you know or can point me to anything I would be grateful.

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Re:Cambridge Bitcoin Electricity Consumption Index by ric2b on Wednesday February 10, 2021 @11:14AM (#26091087)

> How does the network increase the transaction rate to current global rates (at least 10^4 higher)?

Efficiency improvements on the base chain, 2nd layer technologies like Lightning Network and ultimately increasing the base block size limit.

> What happens when the mining phase completes, or if there is a drop in value?

Mining doesn't "complete". There have been many massive drops in value in Bitcoin's history, not sure what you're asking about, it just keeps working?

> What is a sustainable transaction fee for miners to take absent mining incentives?

Anything above 0 is sustainable, you can mine for free if you're using the energy to heat your house.

The question is how much energy the network needs to spend to remain secure, that I don't know, depends on how much any potential attackers are willing to spend to attack it.

> What happens over long periods of time from hardware failures where wallets are lost?

Bitcoin deflates? If some coins are lost but demand remains the same the value of the remaining coins goes up.

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