4 ms·
> Each subsequent block in the chain gets larger, increasing the cost of the necessary resources to sustain the cryptocurrency. That's not correct. The effort
by tashbarg 6y ago
> Each subsequent block in the chain gets larger, increasing the cost of the necessary resources to sustain the cryptocurrency.
That's not correct.
The effort put into any block, past and future, is (long-term adjusted) directly connected to the payout, since the effort is algorithmically self-adjusting. It follows, that the effort put into any current block is worth ~$300k, and therefore worth ~$300k of electricity.
If bitcoin is ever going to be valued less again, the necessary resources to sustain bitcoin will shrink accordingly.
Additionally, they automatically shrink, by design, in ~2024, ~2028 and ~2032.
- doc_gunthrop 6y agoI miswrote the part regarding the size of each subsequent block getting larger. However, the part about the rising cost of resources to sustain the cryptocurrency is valid in practice (assuming the current trend continues and BTC continues to gain further widespread adoption). > If bitcoin is ever going to be valued less again, the necessary resources to sustain bitcoin will shrink accordingly. If I'm interpreting correctly, this will occur because the number of miners will decrease as the reward incentive decreases. Or do you mean something else?
- tashbarg 6y agoYou are interpreting correctly.