3 ms·
There are no economies of scale in PoW. At least for longer term. Cost of energy rises locally the more you use it. Cheap energy is somewhat equally distributed
by Geee 5y ago
There are no economies of scale in PoW. At least for longer term. Cost of energy rises locally the more you use it. Cheap energy is somewhat equally distributed around the globe, which ensures geographical decentralization.
- logimame 5y agoEnergy prices aren't really distributed equally around the world: https://www.globalpetrolprices.com/electricity_prices/ https://www.globalpetrolprices.com/electricity_prices/
- micropresident 5y agoThat has nothing to do with economies of scale.
- Geee 5y agoThis has more to do with electricity demand. It's important to understand the relationship between energy price vs. population density and standard of living. Energy is always cheapest where population density and standard of living are the lowest. That's why bitcoin mining will find it's way to remote sources of natural energy.