Mining
Will High Energy Costs Destroy Bitcoin Mining?
Will High Energy Costs Destroy Bitcoin Mining?
#High #Energy #Costs #Destroy #Bitcoin #Mining
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In this video, I discuss whether very high energy prices or very low energy prices can hurt the Bitcoin mining industry.
Thanks to Satoshi’s automatic “difficulty adjustment,” there is no BTC price or energy input cost at which…
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Please report any fake Michael Saylor ads and scammy Ripple or Solana ads that are sometimes played before my video. Unfortunately I have no control over these ads, which may be served up to you by YouTube. Never ever send your Bitcoin to anyone and expect to get double the Bitcoin back. Please be smart.
Beast
Matthew, you’re the greatest! Always coming through with these simple and down to earth explanations to very complex topics. Thank you, Sir.
HODL
For the algorithm to adjust and become “easier” don’t the Bitcoin hash rate needs to go down in the first place ? Wouldn’t this technically decrease Bitcoin security and therefore give a negative message ?
Fascinating video many thanks for answering! 👍
That why I’m mining anything I can
😂
Btc is a govt creation as Secure Hash Algorithm was designed by the US National Security Agency (NSA).
Matthew, Can you turn your mind to Charles' latest doom loop warning regarding the 10 horsemen of the apocalypse that are the ETF's? He seems to think they are going to fork bitcoin next week or so with the 200K bitcoin they have accumulated thus far. Say it isn't so Rocco.
50k
Can you do a vid on Citrea ? It seems to address the problem that Lightning already solves & has widest adoption for.
It seems increasingly hard to believe, but even after a couple of years of listening to virtually all your videos (and taking some of your courses), I'm still learning. Thanks!
Good info. This channel is the best place for both unbiased factual information, and for smart analysis on why you should have a positive bias for Bitcoin.
"The price for power will more than likely be zero or next to zero by 2100"
That's a massive assumption based on no actual facts. There's no technology today or in development that produces energy at no cost. Prove me wrong.
Good video but I'm still not entirely clear about how the difficulty adjustment works. If it readjusted every 2016 blocks to see if blocks are coming in too fast or too slow then the blocks must be timestamped, right? Whose clock is trusted to do the time stamping?
If it is the miner who mines the block that adds the timestamp, then consider what would happen if miners started fudging the time stamps so it looked like blocks were coming in too slow (alway timestamp it 11+ minutes after the last block for example) and thus reduce the difficulty adjustment? Seems like that would be in the financial interest of all miners and so could be a viable attack vector (even though it might require some coordination among miners).
Thx Matthew.
Matthew, I'm wondering if it is possible for a state to control two "public exchanges" (like Coinbase and another one), and sell its own BTC back-and-forth at a suppressed price to manipulate the market? Would this kind of price attack be possible in the long term? Not that I would complain too much.. I will happily stack the cheaper sats. But if the market cap of BTC is kept artificially low, it could delay "everything priced in sats". Thanks for your great analysis!
Congratulations to us all 🎉🥂 happy 50k Bitcoin day!
the 'useless' Advertising Industry use's 100 x more energy than BTC , think about it !
Youtube unsubscribes me from your channel routinely.
I understand that at a particular difficulty rating you need a hash with a specific number of leading zeros. Say, the difficulty rating requires 4 leading zeros but then the block rate falls under 10 minutes. So now you require 5 leading zeros? Doesnt that make the difficulty twice as big? How does BTC finese these changes?
Thank you, for setting the peeps straight, time and time again…
There was a news report that Chinese miners were moving to Ethiopia next to a damn where electricity generation is cheaper. This is the same around the world.
Thanks Matthew, great info.
Very true. Btc rewards reduce but btc increase in terms of fiat.
BTC mining is highly competitive, this will force BTC miners to hold as much BTC on balance sheet as possible to ensure they can buy better equipment in the future. Miners that hold the highest ratio of their mined BTC will have a competitive advantage over those that sell more of what they mine.
Good video again!
I was thinking there is a scenario where block production could stop: when the hashrate falls too far to produce enough blocks in a reasonable time until the next difficulty adjustment.
An unlikely scenario I guess and a software update could get it going again, but still something that could happen.
Fun fact. The average American home actually consumes about the same electricity today as they did in the 1980's despite having more electronics. Mostly because our devices are more energy efficient. People use LED light bulbs instead of incandescent ones, people have more energy efficient heat pumps and gas furnaces for heating/cooling their homes, and have more energy efficient appliances. Our nations total energy consumption has only gone up because our population has increased.
The difficulty adjustment was for lack of a better term, genius. Often I think to myself.
“How the hell did Satoshi seem
To think of everything?! “
Mining centers are simply upgraded power plants. Most people pay attention to the price but fail to see all that btc has accomplished and will accomplish. Join the winning team!
I think saying that just because demand for electricity and so will price, classic supply and demand, when price should and will fall to the marginal cost of production, and humans evolve past physical identifications but are still experiencing physical reality, electricity will be free because it’s everywhere. Obviously this is pretty far out but I believe is the inevitability over a long enough time period which would also make btc probably not needed but I think there could be a time period where electricity is free while still using btc for a bit. Obviously this is really hard to write out the entirety of what I’m trying to say in a comment:) I really believe that btc is the stepping stone for the next enlightenment period. Pretty hippie dippie huh?
What if one entity invented a unit with a hashing power that completely obliterated the combined hashing power of other miners?
Thank you for all you do, Matthew! The forum is helpful!
Will btc demand outpace mining capacity in such a way that makes the fees so high it will be unusable for retail, or as a currency.