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True. I've been thinking this over for a while. Right now, the general consensus is that the price of bitcoin will end up being related to the cost of electric
by dnadolny 15y ago
True.
I've been thinking this over for a while. Right now, the general consensus is that the price of bitcoin will end up being related to the cost of electricity for computing, and in the long run transaction fees will have to go up or down to make that happen.
I think this will change.
When you have negative externalities like this, where people don't pay for electricity (they're renting, or in a condo/apartment building that has electricity included) or even free CPU power, as in an office, then the economics change. The price of bitcoin won't be tied to the price of electricity/CPU power, it will be tied to the cost of running a website like mine that lets people take advantage of free CPU power.
- wmf 15y agoYes, I think there will be a "base" of miners who basically have zero marginal cost, then a certain number of "suckers" who think that they'll make money even though they won't, and then "serious" miners whose number will vary according to profitability. Ultimately the base + suckers is probably enough to keep Bitcoin working in some form.