4 ms·
It is profitable for the entire network to burn upto 12.5*price of bitcoin dollars worth of coal every ~10 minutes. At $15,000 a BTC, that means miners can cons
by wz1000 9y ago
It is profitable for the entire network to burn upto 12.5*price of bitcoin dollars worth of coal every ~10 minutes. At $15,000 a BTC, that means miners can consume $27,000,000 worth of electricity a day and still remain profitable. This amount varies linearly with the price of BTC.
- PeterisP 9y agoAs a corollary to this, the cost per transaction also varies linearly with the price of BTC - the more useful BTC becomes for investors/speculators/as a store of value, the less useful it becomes as a tool for transactions. On the other hand, the high valuation can only be justified by the expectation of it being a really good tool for transactions (or, alternatively, the greater fool theory) and becoming bad at transactions means it'll eventually become also a bad store of value; so a technical solution to transaction cost is highly needed.