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Re:$130B wiped off crypto markets in 24 hours by zarzavat on Monday January 24, 2022 @10:19AM (#30058673)
> The amount of electricity needed to protect the network is directly tied to the price of BTC

This is not how proof of work functions. Hash rate and price are not directly related, they are somewhat correlated because when the price goes up it becomes more profitable to mine. Bitcoin doesn't need more hash rate for the price to go up - the price is the independent variable and the hash rate is the dependent variable.

Re:$130B wiped off crypto markets in 24 hours by piva00 on Monday January 24, 2022 @11:50AM (#30060206)
Not directly related but not "somewhat" correlated either, it's deeply correlated exactly due to profitability, a point you actually mention but somehow don't consider a deep correlation.
Re:$130B wiped off crypto markets in 24 hours by zarzavat on Monday January 24, 2022 @06:20PM (#30065538)
Mining profitability is subject to conditions besides the price of a Bitcoin, for example: energy prices, block reward changes, regulation, hardware availability and pricing, etc.

It's really not as simple as hash rate = price. It's more so that they are correlated in direction of change.

Re:$130B wiped off crypto markets in 24 hours by tobrien6 on Monday January 24, 2022 @10:22AM (#30058724)
Truth. Parent comment is deeply misinformed. BTC already has more than enough hash rate, and it is entirely independent of price.
Re:$130B wiped off crypto markets in 24 hours by hn_throwaway_99 on Monday January 24, 2022 @11:27AM (#30059779)
That does not make sense.

The whole point of proof of work is that it is proof that someone has spent the value in electricity validating a block.

As the price of bitcoin rises, naturally more and more miners will beef up their rigs (that is, spend more money in infrastructure and electricity) to mine BTC, because the rewards and fees are worth more. Note if they didn't do this, anyone could easily have a "free money" arbitrage play, and basic economics says that discrepancy in prices (i.e. the value of a BTC on the market and the cost to mine one) must be arbitraged away.

Think of it this way, if hash rate is independent of price, why does it take the electricity output of Argentina to run the network? It certainly didn't take that much years ago. The reason being that as BTC becomes more valuable there is more reward and thus more competition for miners to mine. As that happens, the hash rate will rise as more power is added to the network.