nate on Nostr: The consumed energy, of course has already been consumed. The supply that is aimed at ...
The consumed energy, of course has already been consumed. The supply that is aimed at that source of consumption is what can be redirected. This is supply that would otherwise be curtailed in one way or another. Rather then curtailing or ramping the supply, you throttle down the mining. There is no other industrial scale consumer of electricity that can be throttled up and down or completely shut off that quickly. You can’t just shut down a data center full of servers, or take cloud storage offline at moment’s notice.
Yes the bitcoin minted by the data center belongs to the data center, but some must be distributed to cover the coast of electricity. And so long as the data center is paying the bill, what does the producer care? They never need to interact with the bitcoin.
We know definitively, that the fiat dollar will buy less in five years, by definition as an inflationary currency. We know that for the entirety of its history, that there are no 2 points on a bitcoin price chart in which it has bought less five years later. Granted it has a short history; In which it has out competed that vast majority of other currencies in the world.
Why will it continue to go up in trade value vs real goods?(I’ll give that one it’s own separate answer, its kind of a big one.) As long as bitcoin continues to be useful and people want to use it. But why can’t any other cryptocurrency duplicate what bitcoin can offer? Firstly the security of the network. The network has more compute power than any other network in the world, more then all the supercomputers, or anything else, by orders of magnitude. You absolutely can not recreate that, on any realistic time frame, or port that over to another network. Same with the nodes, it is genuinely globally decentralized, and you can’t just port those nodes over to another network.
Yes the bitcoin minted by the data center belongs to the data center, but some must be distributed to cover the coast of electricity. And so long as the data center is paying the bill, what does the producer care? They never need to interact with the bitcoin.
We know definitively, that the fiat dollar will buy less in five years, by definition as an inflationary currency. We know that for the entirety of its history, that there are no 2 points on a bitcoin price chart in which it has bought less five years later. Granted it has a short history; In which it has out competed that vast majority of other currencies in the world.
Why will it continue to go up in trade value vs real goods?(I’ll give that one it’s own separate answer, its kind of a big one.) As long as bitcoin continues to be useful and people want to use it. But why can’t any other cryptocurrency duplicate what bitcoin can offer? Firstly the security of the network. The network has more compute power than any other network in the world, more then all the supercomputers, or anything else, by orders of magnitude. You absolutely can not recreate that, on any realistic time frame, or port that over to another network. Same with the nodes, it is genuinely globally decentralized, and you can’t just port those nodes over to another network.