I don't understand the reasoning. What happens if miners stop mining? I understand that only new Bitcoins stop being generated, and therefore there's no inflation in Bitcoin's value. I don't understand why the price would be affected if miners stopped mining. Any ideas?
Bitcoin ‘inflation’ is basically a non-factor. The real price driver is the halving, which hard-codes the supply of new coins. Some worry about miners dropping off, but that wouldn't fundamentally change the price… it would just wash out the inefficient players. It’s a self-correcting system
Perhaps it’s a bit out of scope here, but while some say it’s a distant concern, I believe the quantum threat is a real issue affecting bitcoin's value ,especially since Bitcoin is not easily updated by design.
Excellent breakdown of the hidden costs. The depreciation angle is brutal and so often ignored. When retail sees a $14k electric cost per coin, they miss the part where the rig itself is a melting ice cube. I went through something similar analyzing data center economics where capex amortization ended up being the real killr. The AISC framing is spot on for separating zombie miners from compounders.
I don't understand the reasoning. What happens if miners stop mining? I understand that only new Bitcoins stop being generated, and therefore there's no inflation in Bitcoin's value. I don't understand why the price would be affected if miners stopped mining. Any ideas?
Bitcoin ‘inflation’ is basically a non-factor. The real price driver is the halving, which hard-codes the supply of new coins. Some worry about miners dropping off, but that wouldn't fundamentally change the price… it would just wash out the inefficient players. It’s a self-correcting system
Perhaps it’s a bit out of scope here, but while some say it’s a distant concern, I believe the quantum threat is a real issue affecting bitcoin's value ,especially since Bitcoin is not easily updated by design.
https://open.substack.com/pub/hrmt/p/why-bitcoin-is-going-to-zero?r=172bdp&utm_medium=ios&shareImageVariant=overlay
Excellent breakdown of the hidden costs. The depreciation angle is brutal and so often ignored. When retail sees a $14k electric cost per coin, they miss the part where the rig itself is a melting ice cube. I went through something similar analyzing data center economics where capex amortization ended up being the real killr. The AISC framing is spot on for separating zombie miners from compounders.