Post
Topic
Board Economics
Re: Energy Consumption of the Bitcoin Network
by
BurtW
on 06/07/2014, 14:46:33 UTC
Yes, and at equilibrium, the energy spent by the network has exactly the value of the minted coins.
Proof of Work = (literally) Proof of Energy Spent
There is no such thing as "efficient" mining hardware.
I would disagree with your statement about there being no such thing as "efficient" mining hardware. I would define efficient miners as machines that use less electricity per GHs then the network does as a whole.

Of course, mining hardware can become more efficient.  The point is that does not matter with respect to the total power and/or energy consumption of the Bitcoin network.  Look at the math above where I proved this to you.  

https://bitcointalk.org/index.php?topic=520977.msg7687843#msg7687843

Also, if that is too much to read then re-read this until you understand it:

Your theory doesn't match the facts. People just keep adding more mining hardware until the electricity consumption is as much as they can stand. The diff rises and they get less BTC than they were getting with the lower efficiency setup.

See yet?