Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
And yes, having to clarify misrepresentations of The Other Bitcoins does indeed get tiresome. But I soldier on. Because truth is important.
There truth is there is 1 Bitcoin and then at least a dozen altcoins with the word "Bitcoin" in their names, trying to ride off the success of Bitcoin. Your intellectual foible here (and, perhaps the reason why some people think you're a butthole, though I would never say such a thing) is pretending altcoins are the same thing as bitcoin. They are not. They are not to developers, traders, exchanges, the news media or the public.
They are only the same thing to those rooting for the success of an altcoin. And that in itself is fine -- I just find it dishonest to attempt to persuade others into believing that they are also bitcoin. It makes the confusing nature of cryptocurrency even more confusing to the general, largely un-adapted public.
Let's face it: without Wright being Satoshi, BSV is just another altcoin with the word "bitcoin" in its name. News-based price action has pretty much confirmed this.
Nevertheless, I am demonstrating charity to you as you have to me by meriting your post, but it was for the below content, as I have a hard time arguing for a reason as to why the profit margin for bitcoin mining should be above the 10x or so range. I am a little bit drunk though. I'm sure there's a good rationale out there.
No. While exaggerated, r0ach has a point. Additional increase in price will inevitably result in increased hashpower thrown at mining. The natural state (once supply and demand shocks stop oscillating) is that the money expended upon mining opex + capex + marginal profit will be equal to the value of the mining rewards (block reward plus tx fees). Bitcoin hashing chips are already darned near the state of the art, meaning that the generational benefits of new hardware is slowing. Accordingly, capex will have a longer profitable time horizon, leading to the above equation being even more dominated by opex -- which is in turn energy cost.
Efficiency has nothing to do with the amount of energy expended in mining. More efficient HW just means that more hashpower will be put into service, until the energy cost expended brings the above equation back into balance.
Efficiency has nothing to do with the amount of energy expended in mining. More efficient HW just means that more hashpower will be put into service, until the energy cost expended brings the above equation back into balance.