Comte de Sats Germain on Nostr: Econ axiom : MC = MR Marginal cost approaches marginal revenue for any good in a ...
Econ axiom :
MC = MR
Marginal cost approaches marginal revenue for any good in a state of perfect competition.
That's thinking in fiat. It's true, but let's change that to energy.
Now it's a cost/benefit analysis for pumping a barrel of oil. The energy return must be greater than the energy invested, or no one will do it. But the margin of energy return will fall to zero - when it costs the same amount of energy to pump a barrel as the barrel can produce, then there's no reason to spend that energy.
So, the axiom will still hold, and will even be more useful.
MCe = MRe
Bitcoin makes this easy to measure, while allowing for future advancements in efficiency.
One barrel of oil can produce X sats, so you are willing to invest up to X sats to pump that barrel.
The energy market will be denominated in sats because that's the simplest way to measure the profitability of an energy project.
Any energy source, anywhere on Earth or Luna, can make money by mining BTC and selling the sats at the speed of light.
BTC is pure energy money and it massively simplifies engineering calculations.
#Bitcoin #civilization #economics engineering #energy #future
MC = MR
Marginal cost approaches marginal revenue for any good in a state of perfect competition.
That's thinking in fiat. It's true, but let's change that to energy.
Now it's a cost/benefit analysis for pumping a barrel of oil. The energy return must be greater than the energy invested, or no one will do it. But the margin of energy return will fall to zero - when it costs the same amount of energy to pump a barrel as the barrel can produce, then there's no reason to spend that energy.
So, the axiom will still hold, and will even be more useful.
MCe = MRe
Bitcoin makes this easy to measure, while allowing for future advancements in efficiency.
One barrel of oil can produce X sats, so you are willing to invest up to X sats to pump that barrel.
The energy market will be denominated in sats because that's the simplest way to measure the profitability of an energy project.
Any energy source, anywhere on Earth or Luna, can make money by mining BTC and selling the sats at the speed of light.
BTC is pure energy money and it massively simplifies engineering calculations.
#Bitcoin #civilization #economics engineering #energy #future
quoting nevent1q…jrgfMy favorite chart is Crude Oil priced in Bitcoin, thank you Jeff Booth (nprofile…z2l5)
