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If bitcoin price continues to rise, wouldn't the power cost become relatively smaller? Wouldn't miners care less?
by differentView 6y ago
If bitcoin price continues to rise, wouldn't the power cost become relatively smaller? Wouldn't miners care less?
- mlyle 6y agoThe amount of money for a given amount of energy spent mining you get is effectively Bitcoin price / difficulty. If Bitcoin price goes up, then the return on energy gets greater. Therefore, it's worth it to spend more energy mining. Then difficulty rises and takes this incentive away, reaching a new equilibrium with more energy spent.