$130B wiped off crypto markets in 24 hours

Re:$130B wiped off crypto markets in 24 hours by matheusmoreira on Monday January 24, 2022 @12:01PM (#30060418)

That's a big assumption. Same assumption made in the study which provides the 0.5% world energy consumption figure that everyone is citing. No actual evidence that it is true is provided. The same study shows minimum consumption estimates which are much more reasonable.

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Re:$130B wiped off crypto markets in 24 hours by hn_throwaway_99 on Monday January 24, 2022 @12:11PM (#30060565)

I'm not assuming anything.

There is a guaranteed deep correlation between BTC price and amount of electricity needed to run the BTC network. That is the way proof of work is designed to function. I.e the whole way it protects against a 51% attack. There is simply no getting around this.

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Re:$130B wiped off crypto markets in 24 hours by matheusmoreira on Monday January 24, 2022 @12:16PM (#30060652)

There is a relationship between mining difficulty and energy consumption. What I don't see is the correlation between price and mining difficulty. By this logic, mining activity should be way down right now.

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Re:$130B wiped off crypto markets in 24 hours by orwin on Monday January 24, 2022 @02:21PM (#30062552)

I've read this explanation that i find explicit:

""" If 1 coin costs $50,000, and you already own the rig, it's worth spending $49,999 on electricity to mine the next coin and you will make a profit. If you're rig can't do that, you're better off just turning it off. """

Note that this is how it worked for bitcoin startup five years ago once the first specialized bitcoin rigs came into being. When the price of electricity where they operated became too high, some startup shut out or just changed their operations to create value around BTC(email/photograph ID/validation on the blockchain or other stuff like that)

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