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The economics of the situation seem to point towards the owners of the mining operations making a fairly slim margin. The amount of electricity required to min
by caf 6y ago
The economics of the situation seem to point towards the owners of the mining operations making a fairly slim margin. The amount of electricity required to mine must rise until the mining input costs are close to the current Bitcoin price, because for as long as there are outsized returns from mining Bitcoin, more mining businesses will get into it and cause the difficulty to rise.
- inglor_cz 6y agoYes, but their margin is kinda-sorta certain, while speculants who buy the product run risk of sudden price collapse. No one will bail out Bitcoin speculants if it happens, they are no government's buddies. In other words, it is another globalized and pretty efficient market, but without outright slavery or serfdom on the chain beginning. Compared to guano mines or Potosi mines or even today's cobalt mines in Congo, the first humans in the chain are not miserable.
- yoavm 6y agoThat might be true, but the statement from the article still stands. Those who mine bitcoins (using their computers) are probably not those getting rich of it.
- caf 6y agoAre not those mining the coal that's burnt for the electricity to power the Bitcoin mining operations the first humans in the chain?