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This reflects a misunderstanding of the drivers of mining costs. Mining only costs a lot because coin value is high and the block reward is high. This means mi
by aback 11y ago
This reflects a misunderstanding of the drivers of mining costs.
Mining only costs a lot because coin value is high and the block reward is high. This means miners are willing to spend more to win the reward.
As the block reward lowers then mining becomes funded entirely by equilibrium-priced fees.
- maaku 11y agoOh I understand mining economics quite well. The comment I was responding to however claims that some people will continue to mine at a loss after the subsidy is negligible. However that assumes that people would be willing lose hundreds of millions of dollars per year on power costs just to meet current security levels, let alone whatever level of higher security might be required in a moonshot scenario.
- tmornini_ey 11y agoMillions of people collectively losing hundreds of millions of dollars a year is less than $1/month individually.