BTCMeansFreedom4All on Nostr: Part 3: Miner hashrate efficiency growth. Over the 6 years between 2018 and 2024 the ...
Part 3: Miner hashrate efficiency growth.
Over the 6 years between 2018 and 2024 the efficiency of the top of the line miners grew from 98 Joules/TH with the S9, to 15 Joules/TH with the S21. This is an efficiency gain of 6.53 times.
Expressed as an annual efficiency improvement rate, that's 36.7% or 1.367^X.
This efficiency growth seen at the top of the market is likely to be experienced throughout the mining ecosystem as the old miners get cheaper to own and people upgrade.
This efficiency growth then offsets the growth of the hashrate talked about in part 2 as follows:
1.572/1.367 = 1.15
Meaning the real value increase of energy into the mining network over 6 years was about 15% a year on average. This applies to not only the cost of energy for new coins, but it is also reflected in a rise in the equivalent cost on the FIAT market for all coins.
Why? Because, as Jeff Booth (npub1s05…eyhe) famously says, everything trends towards it's marginal cost of production. Why would you sell anything for less than it costs to make it? If you have a rare item that costs more now than when you bought it, wouldn't you value it at its more recent production cost?
Continued in Part 4: The drive behind the growth in the mining network.
Over the 6 years between 2018 and 2024 the efficiency of the top of the line miners grew from 98 Joules/TH with the S9, to 15 Joules/TH with the S21. This is an efficiency gain of 6.53 times.
Expressed as an annual efficiency improvement rate, that's 36.7% or 1.367^X.
This efficiency growth seen at the top of the market is likely to be experienced throughout the mining ecosystem as the old miners get cheaper to own and people upgrade.
This efficiency growth then offsets the growth of the hashrate talked about in part 2 as follows:
1.572/1.367 = 1.15
Meaning the real value increase of energy into the mining network over 6 years was about 15% a year on average. This applies to not only the cost of energy for new coins, but it is also reflected in a rise in the equivalent cost on the FIAT market for all coins.
Why? Because, as Jeff Booth (npub1s05…eyhe) famously says, everything trends towards it's marginal cost of production. Why would you sell anything for less than it costs to make it? If you have a rare item that costs more now than when you bought it, wouldn't you value it at its more recent production cost?
Continued in Part 4: The drive behind the growth in the mining network.
quoting note1jf5…3klhWhat is Bitcoin's base average
growth rate?
Part 2: Tracking Hashrate growth.
Between Nov 2018 and Nov 2024 the hashrate of the mining network grew from 46.5 Million TH to 702 Million TH. That's a growth of 15.1 times. This is only 6 years of growth.
Expressed as an annual growth rate, that's 57.2% or 1.572^X.
The hashrate is not a direct measure of value however, as the efficiency of mining hardware grows over time and reduces the relative value of each hash.
Continued in Part 3: Miner hashrate efficiency growth.
note15fu…3tjj