Home Bitcoin financial concept – Affect of mining know-how on international bitcoin vitality utilization?

financial concept – Affect of mining know-how on international bitcoin vitality utilization?

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financial concept – Affect of mining know-how on international bitcoin vitality utilization?

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I typically hear that enhancements of mining know-how (extra hashes per kWh) would enhance Bitcoin vitality utilization. Is not that only a misunderstanding? Is not the vitality utilization hardly depending on the precise know-how utilized by the miners, as a result of enhancements simply result in an issue increase?

Contemplate this thought experiment. To illustrate there have been miracle ASICs invented which have 1000 occasions the hash price per kWh as present ASICs. What I feel would occur is that this. At first, miners altering to the miracle ASIC can be massively extra worthwhile than the others. So others would change to the miracle ASIC, too, and the worldwide hash price will increase, and thus the problem. The miners utilizing the outdated ASICs would get unprofitable and need to scramble to get the brand new ASICs, too. In the long run all would change to the miracle ASICs, some would quit, some would come new, the problem can be 1000 occasions than earlier than and the vitality utilization nearly the identical. (All in all of the vitality utilization is decided by the mining reward, as a result of there’s an incentive for brand new miners to come back in till a lot of the mining reward is spent on prices, and vitality is the most important value issue, so there isn’t any coming down so long as POW is used.)

Am I lacking one thing essential there?

(BTW: I am conscious that there could possibly be some shifts if e.g. the miracle ASIC is far more costly than the outdated ones. My level on this thought experiment is that we would not need to anticipate a change within the order of magnitude of vitality utilization, regardless of three orders of magnitude of change in mining effectivity.)

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