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Re:Harvard supercomputing cluster hijacked to mine Dogecoin by WizzleKake on Friday February 21, 2014 @03:43PM (#7279291)
> the $2,160,000 dollars of Bitcoins that come into existence every day, that's also about $2,160,000 of electricity used.

You lost me. What?

Re:Harvard supercomputing cluster hijacked to mine Dogecoin by vertex-four on Friday February 21, 2014 @03:54PM (#7279368)
The assertion is that there's roughly enough miners that miners make only a little profit. If your electricity costs $80 and you're likely to make $100, you're going to do it, and the OP is making an assumption that enough people have made that calculation that the amount of money made per miner is close to the cost of electricity per miner.

Therefore, the cost of electricity used should be close to the value of the bitcoins produced.

Re:Harvard supercomputing cluster hijacked to mine Dogecoin by bbosh on Friday February 21, 2014 @03:49PM (#7279326)
A new block gets mined every 10 minutes, each with a 25BTC bounty. That's 600 * 25 * 6 * 24 = $2,160,000 per day. No rational person would spend more in electricity than the reward, hence the 1-to-1 conversion. (In fact, miners do spend more than they earn, collectively.)
Re:Harvard supercomputing cluster hijacked to mine Dogecoin by wlesieutre on Friday February 21, 2014 @03:51PM (#7279345)
That's based on the idea that if bitcoin mining is profitable, more people will get in on it until it eventually becomes break even with the cost of doing it.

This is of course a big simplification, and neglects things like the upfront cost of building the mining equipment.