4 ms·
Miners are incentivized to maximize their energy consumption. The fact that they're able to extract more value with energy efficiency is irrelevant.
by lwansbrough 5y ago
Miners are incentivized to maximize their energy consumption. The fact that they're able to extract more value with energy efficiency is irrelevant.
- nyolfen 5y agominers pay energy bills, ergo seek out cheap energy. the cheapest energy is usually hydro. the efficiency directly impacts their bottom line.
- lwansbrough 5y agoMiners make a profit, otherwise they wouldn’t do it. If you can suddenly double your hash rate without changing your power consumption there’s no reason why you wouldn’t do that. You’re incentivized to maintain or grow your power consumption to make more or the same amount of crypto per kWh.
- hrhrhrhrhr 5y agoThat's like saying that cab drivers are incentivized to maximize their gas consumption. No, miners are actually incentivized to minimize their energy consumption while maximizing output.
- lwansbrough 5y agoIf you’re a miner, and you’re able to halve your power consumption without sacrificing any hash rate, you’re absolutely going to double your processing capacity to maintain your original power consumption, because it makes you more money. A cab driver can’t do twice as much driving if they double their vehicle’s energy consumption.