From the perspective of a store of value, I’m starting to think the costs are a feature, not a bug. Bitcoin is the most popular>huge fees to transact>more miners for bitcoin>bitcoin is more popular. Requiring more energy in some way means firms that mine have higher costs, there was an according use of resources on one side of the ledger from the value of the bitcoin it created. In 101 talk, it’s worth what people will buy it for, but I can’t help but think that those costs to mine find their way into the prices somehow—not just energy, but entrepreneurship and fixed costs. That is to say, congestion begets high price for mining, which begets higher prices in bitcoin, which is the main idea for like 99% of bitcoin users
Mining cost mean that if no person wants to increase their holding in Bitcoin and no person wants to decrease their holdings in Bitcoin the price of Bitcoin is going to fall because the miners have to sell mined Bitcoin to pay for their electricity. You need billions of dollars to flow into Bitcoin just to keep the price even.
From the perspective of a store of value, I’m starting to think the costs are a feature, not a bug. Bitcoin is the most popular>huge fees to transact>more miners for bitcoin>bitcoin is more popular. Requiring more energy in some way means firms that mine have higher costs, there was an according use of resources on one side of the ledger from the value of the bitcoin it created. In 101 talk, it’s worth what people will buy it for, but I can’t help but think that those costs to mine find their way into the prices somehow—not just energy, but entrepreneurship and fixed costs. That is to say, congestion begets high price for mining, which begets higher prices in bitcoin, which is the main idea for like 99% of bitcoin users
Mining cost mean that if no person wants to increase their holding in Bitcoin and no person wants to decrease their holdings in Bitcoin the price of Bitcoin is going to fall because the miners have to sell mined Bitcoin to pay for their electricity. You need billions of dollars to flow into Bitcoin just to keep the price even.