Stuart Bowman on Nostr: But bitcoin wouldn't actually become easier to produce because of the difficulty ...
But bitcoin wouldn't actually become easier to produce because of the difficulty adjustment, right? Because if the cost of energy falls by a factor of one thousand, this means that (excluding the initial capex of mining rigs for simplicity) people can now afford to run a thousand times as many miners for the same electricity cost. The super weird thing is that for anything other commodity besides btc, this would tank the price. But for btc, the network simply adjusts the difficultly to make each hash harder to find in exact proportion to how much energy you throw at it.
Published at
2024-05-03 01:52:52Event JSON
{
"id": "6bbd7279d955a8a42dc4dd0de5b2b9a2e19f5778bd28d0c8792b02199633ad79",
"pubkey": "ff27d01cb1e56fb58580306c7ba76bb037bf211c5b573c56e4e70ca858755af0",
"created_at": 1714701172,
"kind": 1,
"tags": [
[
"e",
"ef6728fd080eebed3ed4ae091870de8bf180ce9304332ff0eb5f1b0eca9bfeab",
"",
"root"
],
[
"e",
"df32b68d80efabc18f6a36bf6de257a4710d2569668a0908e96f46574f1e9b39",
"",
"reply"
],
[
"p",
"ff27d01cb1e56fb58580306c7ba76bb037bf211c5b573c56e4e70ca858755af0"
],
[
"p",
"3f770d65d3a764a9c5cb503ae123e62ec7598ad035d836e2a810f3877a745b24"
]
],
"content": "But bitcoin wouldn't actually become easier to produce because of the difficulty adjustment, right? Because if the cost of energy falls by a factor of one thousand, this means that (excluding the initial capex of mining rigs for simplicity) people can now afford to run a thousand times as many miners for the same electricity cost. The super weird thing is that for anything other commodity besides btc, this would tank the price. But for btc, the network simply adjusts the difficultly to make each hash harder to find in exact proportion to how much energy you throw at it.",
"sig": "d3de47ddd01495482cfa95298332eb0ec74f673c59309f2f4200107ac506c6a0a3241dba7fb601f6a551e9c3f7f79ab1459e3d128af13c31ca1e2a613d09f3d4"
}
