Re:Electricity needed to mine Bitcoin is more than used by '...
by doc_gunthrop on Saturday February 27, 2021 @05:01PM
(#26288579)
I miswrote the part regarding the size of each subsequent block getting larger. However, the part about the rising cost of resources to sustain the cryptocurrency is valid in practice (assuming the current trend continues and BTC continues to gain further widespread adoption).
> If bitcoin is ever going to be valued less again, the necessary resources to sustain bitcoin will shrink accordingly.
If I'm interpreting correctly, this will occur because the number of miners will decrease as the reward incentive decreases. Or do you mean something else?
That's not correct.
The effort put into any block, past and future, is (long-term adjusted) directly connected to the payout, since the effort is algorithmically self-adjusting. It follows, that the effort put into any current block is worth ~$300k, and therefore worth ~$300k of electricity.
If bitcoin is ever going to be valued less again, the necessary resources to sustain bitcoin will shrink accordingly.
Additionally, they automatically shrink, by design, in ~2024, ~2028 and ~2032.