This is really helpful, thank you for the post. If average cost to mine 1 BTC is $17k, what is the long-term case for evergreen miners? They are barely squeaking out a profit now, energy costs are likely to go up, miner block rewards get halved in 2024...it seems that the long-term microeconomics of the miners aren't favorable? Their only saving grace is if BTC price doubles or more every 4 years, which could happen...but if that doesn't happen, and price increases don't outweigh the halving and the increasing energy costs, is there anything stopping a negative feedback loop where miners stop mining b/c there is no economic incentive to mine? And if mining stops being profitable, then what?
Thank you. That's the context I was looking for. As such, a really helpful write up.
I skipped most of the flourish to be honest. Not because it isn't well written. But because my mind refuses to be cluttered by more metaphors and things that are not "the thing".
This is really helpful, thank you for the post. If average cost to mine 1 BTC is $17k, what is the long-term case for evergreen miners? They are barely squeaking out a profit now, energy costs are likely to go up, miner block rewards get halved in 2024...it seems that the long-term microeconomics of the miners aren't favorable? Their only saving grace is if BTC price doubles or more every 4 years, which could happen...but if that doesn't happen, and price increases don't outweigh the halving and the increasing energy costs, is there anything stopping a negative feedback loop where miners stop mining b/c there is no economic incentive to mine? And if mining stops being profitable, then what?
Thank you. That's the context I was looking for. As such, a really helpful write up.
I skipped most of the flourish to be honest. Not because it isn't well written. But because my mind refuses to be cluttered by more metaphors and things that are not "the thing".
That 1.75mm bitcoin that miners has, does that include satoshis mined? Must be a big pie.