Profitability of individual machines doesn't really matter in this argument as it is generalising across the whole estate and estimating electricity consumption in the round from miners total income. See also here -
https://www.cell.com/joule/fulltext/S2542-4351(21)00083-0 - which makes a similar argument: " in the long run, the share of electricity costs in the total costs of mining is around 60%". If miners have more efficient machines that use less electricity for a given return they will simply buy more of them, because they can afford to.
Ok, from the start, this one I don't get it, I don't understand a thing from it so going over it.
Now here I disagree, except for the fact (as I have said) that there is clearly a lag between changing price and changes to the network. If miners do not have the income support their expenses they will not (except for relatively short periods of time) continue to spend money on electricity.
They will continue to spend as long as it's profitable and that's why I was telling you at current prices there aren't miners who will drop out even if the reward goes to half with a price drop, the profits margin are so big right now you will not see a drop in hashrate on this alone. To have a better look you need to look at the hashrate before the jump with a nearly constant average price between around 10k and extrapolate from there the impact. Right now this one is supported even at 25k per BTC.
The index assumes that miners will spend 60% of their revenues on operational costs on average in equilibrium.
But then goes on to give an estimate of 22.21% of their income being spent on electricity, without explaining why they haven't used their own assumption. They are certainly a bit vague about how they actually perform the calculation.
Pretty easy:
The 60% in that calculation is at a maximum optimal cost for them to run a profit at any time.
The 22.1% is the current number, which is explained by the huge jump in profitability, showing just how much is left there to grow.
Think of it as shale oil profitability, the required level is (assumption here) 50$, the price is currently $65.
All have ignored the lowest power used to get a BTC is using the linzhi eth miner.
philipma1957, I was going from the start to say, let's first look at the rewards per day, as from my assumption those in ETH were too low to matter and then I got a shock, what the***
ETH $43,251,190.53 USD
BTC $53,335,447.97 USD
wow, just wow
If this is really happening then it's going to suppress the ETH price on the ETH/BTC pair worse than any event out there.
Didn't see this one, and never imagined it to be possible, not even counting it as a factor.