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Crypto is carefully designed to model Parkinson's Law. (Proof of) Work always grows to fill the compute available.
by ip26 5y ago
Crypto is carefully designed to model Parkinson's Law. (Proof of) Work always grows to fill the compute available.
- kelseyfrog 5y agoNetwork difficulty adjusts to pull the demand curve to the right. That makes the GPU market supply-constrained. Any increase in supply will be met with a lower price equilibrium which will result in more GPUs bought and used for mining. Which results in a higher THR which will be met with additional increases in network difficulty which will pull the demand curve to the right ad infinitum. I'm not sure how much more economics 101 I can make this. As long as GPUs are part of the system, the GPU market will be supply-constrained. The supply and demand curves will continue to drift to the right.