PentaSophia on Nostr: Here’s something I have been pondering: If Bitcoin mining similarly tends toward ...
Here’s something I have been pondering:
If Bitcoin mining similarly tends toward the marginal cost of production, that would be calculated by the cost of hardware and energy costs.
Hypothetically, if Bitcoin would 1,000,000x and demand for block space stayed the same, would mining fees be expected to go to 1sat/vbyte? Given that that each mining fee would cover quite a large amount of electricity and hardware costs.
The natural state of any free market is deflation and Technology itself is deflationary because prices fall to the marginal cost of production. Bitcoin is imposing its decentralized, secure, immutable blockchain rules, and repricing everything. Since Bitcoin is an honest ledger, Bitcoin does not care because everything will be repriced in it. The train has already left the station. Don’t trust, verify. 🍊💊🫡
Published at
2024-02-28 18:43:49Event JSON
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