Re:Bitcoin is not a Battery – it is a Sink
by vbezhenar on Sunday March 28, 2021 @01:18PM
(#26612137)
> There's simply no direct relationship between the cost of electricity and that of bitcoin that I can see.
Miners get 12.5 BTC every 10 minutes. That's the direct relationship between the cost of bitcoin and the cost of electricity. If miners (total combined) spend less electricity, they'll buy more hardware. If they're spending more electricity, some of them will go bankrupt reducing total electricity consumption.
I'm simplifying it a little bit, because miners also get transaction fees, but those are similar to the main reward and logic still works.
Miners get 12.5 BTC every 10 minutes. That's the direct relationship between the cost of bitcoin and the cost of electricity. If miners (total combined) spend less electricity, they'll buy more hardware. If they're spending more electricity, some of them will go bankrupt reducing total electricity consumption.
I'm simplifying it a little bit, because miners also get transaction fees, but those are similar to the main reward and logic still works.