Re:The Ethereum merge is done
by ajross on Thursday September 15, 2022 @11:22AM
(#32853445)
It will if you can't mine enough to cover the cost of the electricity required to run it, which is true if you want to mine BTC with it, for example.
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Not necessarily. It's true if the person making the decision is getting paid directly from the mining. But perverse incentives abound in the cryptocurrency space. For example, consider Celsius:
https://amycastor.com/2022/09/11/crypto-collapse-celsius-voy...
https://davidgerard.co.uk/blockchain/2022/08/11/crypto-colla...
As they thrash around in bankruptcy, they have proposed that they will mine their way out of the hole. Will this work? I doubt it. But will it let the CEO stay in charge for a while longer, taking in more investor money and continuing to get paid? Possibly! So actual economic efficiency may not matter.