Right now energy is priced in dollars and sats are priced in dollars (for most), so mining is an arbitrage against the dollar. Spend x in dollars get x+ in sats value. What happens to energy prices when priced in bitcoin.
For example I read it would take solo miner 266,000 kWh to find a block (if ever) and might take 7 years. At $0.12 per kWh would be $31,920. At $46,000 Bitcoin that’s “profit” of ~14,000.
If priced in Bitcoin would the cost of energy equal that value of the network? Having a hard time wrapping my head around this.
DecentralBTC /
npub1ck…5zdds
2024-01-11 10:43:20
in reply to nevent1q…v43k
Author Public Key
npub1ckem6dmxpup7sl9lnw05ku9g9ke9nm3pzl2dyz3kkjgk55wpvjeqz5zddsPublished at
2024-01-11 10:43:20Event JSON
{
"id": "91cad9f52496929ae3d3f3e42172e61bb95c4a604cea82e980f22ba6ceb73164",
"pubkey": "c5b3bd37660f03e87cbf9b9f4b70a82db259ee2117d4d20a36b4916a51c164b2",
"created_at": 1704969800,
"kind": 1,
"tags": [
[
"e",
"8acb19c5b9a1711ce994a02a92716a95fff5c7502af006ee7da232db7965741e"
],
[
"p",
"b7996c183e036df27802945b80bbdc8b0bf5971b6621a86bf3569c332117f07d"
]
],
"content": "Right now energy is priced in dollars and sats are priced in dollars (for most), so mining is an arbitrage against the dollar. Spend x in dollars get x+ in sats value. What happens to energy prices when priced in bitcoin. \n\nFor example I read it would take solo miner 266,000 kWh to find a block (if ever) and might take 7 years. At $0.12 per kWh would be $31,920. At $46,000 Bitcoin that’s “profit” of ~14,000.\n\nIf priced in Bitcoin would the cost of energy equal that value of the network? Having a hard time wrapping my head around this.",
"sig": "8024cedb372316e1313e316de4c2c954cb36bea8ddeb5fa2ead86fcddba12ce0535c842650ee317f5a17f219142be69fe8b4f4b1930f9a96172594437dd71660"
}