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> This is why I called out the attack on Lightning by association to Bitcoin. Would it, if used widely, contribute to Bitcoin's power usage problem? No, it woul
by cesarb 4y ago
> This is why I called out the attack on Lightning by association to Bitcoin. Would it, if used widely, contribute to Bitcoin's power usage problem? No, it wouldn't. Bitcoin's power usage problem is unique to the mining strategy for the chain, not the use of the transactions it enables, off chain.
The contribution to Bitcoin's power usage is a bit more indirect. The power usage of Bitcoin mining is capped by how much electric power miners can buy with the block rewards and fees (otherwise, the miners would lose money). The block rewards and fees are measured in Bitcoins, while the cost of electric power is measured in dollars (or whatever is the currency where the miner is located). To convert from Bitcoins to dollars, you multiply by the price of a Bitcoin. Therefore, whenever the Bitcoin price increases, the cap on how much power Bitcoin mining can use also increases.
By making Bitcoin more useful, Lightning Network can increase the demand for Bitcoins. As we all know, increasing demand while keeping the supply the same (and Bitcoin's supply is fixed by its algorithm, it doesn't change to track the demand) tends to increase the price. And that means miners have more money they can use to buy more power to mine Bitcoin.