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This is only relevant if your clearing bit coins above the cost of the electricity. If not, you’re losing more turning them on than off.
by anbende 8y ago
This is only relevant if your clearing bit coins above the cost of the electricity. If not, you’re losing more turning them on than off.
- slavik81 8y agoIn economic terms, suppliers will continue producing so long as the sale price is greater the marginal cost of production. The average cost is irrelevant in the short run because it includes sunk costs.
- throwaway123156 8y agoThe comment you were responding to was about electricity, which is clearly a highly linearly correlated marginal cost. I am not sure why you're bringing up average costs at all. And the comment you replied to did not even mention the other marginal costs that Bitcoin faces (employee costs, land rental, networking costs, etc).
- slavik81 8y agoI was restating what they were getting at in a way that could be easily traced back to widely studied economic theories. It was an elaboration, not a disagreement.