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As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency. So that would just affect everyone who isn't mining currency sinc

As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency. So that would just affect everyone who isn't mining currency since the miners just offset their costs by selling.

josephcsible 5y ago
But cryptocurrency can be mined anywhere, not just in Kazakhstan. If only Kazakhstan raises their electricity prices, then the price of the cryptocurrency will basically stay the same, but mining will naturally move elsewhere.
- baybal2 5y ago
  Kazakhstan been intermittently on the 1st, and 2nd place for mining output since fall in Chinese output. USA regained the firm lead after a few months when bigger Chinese mines moved there.
exo762 5y ago
> As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency This is wrong. Multiple currencies use proof-of-stake and still have value. Price is determined by demand and supply.
- that_guy_iain 5y ago
  > Multiple currencies use proof-of-stake and still have value. Are they Bitcoin valuable? Are they as valuable as proof of work? I think not. > Price is determined by demand and supply. So the supply is lower because it's harder to mine so the price goes up and because the price is going up demand is higher. It's kinda like diamonds. Pretty useless but because the big companies hoarde all the diamonds they keep the price high and because the price is high people put value in them.
gruez 5y ago
You got cause and effect flipped. Cryptocurrency's value determines how much money can be poured into mining it. If bitcoin is at $60k, the block reward is 6.25 BTC, and there's a block every 10 minutes, then the entire mining bitcoin mining system can only consume 6.25 * $60k = $375k worth of electricity every 10 minutes. If the cost of electricity doubles, all that would mean is that the system can consume half as much electricity.

josephcsible 5y ago

But cryptocurrency can be mined anywhere, not just in Kazakhstan. If only Kazakhstan raises their electricity prices, then the price of the cryptocurrency will basically stay the same, but mining will naturally move elsewhere.

baybal2 5y ago
Kazakhstan been intermittently on the 1st, and 2nd place for mining output since fall in Chinese output. USA regained the firm lead after a few months when bigger Chinese mines moved there.

exo762 5y ago

> As far as I can tell cryptocurrency's value comes from how much it costs to mine the currency This is wrong. Multiple currencies use proof-of-stake and still have value. Price is determined by demand and supply.

that_guy_iain 5y ago
> Multiple currencies use proof-of-stake and still have value. Are they Bitcoin valuable? Are they as valuable as proof of work? I think not. > Price is determined by demand and supply. So the supply is lower because it's harder to mine so the price goes up and because the price is going up demand is higher. It's kinda like diamonds. Pretty useless but because the big companies hoarde all the diamonds they keep the price high and because the price is high people put value in them.

gruez 5y ago

You got cause and effect flipped. Cryptocurrency's value determines how much money can be poured into mining it. If bitcoin is at $60k, the block reward is 6.25 BTC, and there's a block every 10 minutes, then the entire mining bitcoin mining system can only consume 6.25 * $60k = $375k worth of electricity every 10 minutes. If the cost of electricity doubles, all that would mean is that the system can consume half as much electricity.