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Bitcoin Q&A: Mining, Energy Prices, and Fee Market



Is it nonetheless worthwhile to mine bitcoin when the value drops? Is the discount in vitality costs harmful for Bitcoin? Will transactions charges rise dramatically in 2140 when the block subsidy goes to zero?

Chapters
0:00 Is it nonetheless worthwhile to mine bitcoin now that the value has dropped?
9:19 Will the continuing discount in vitality costs impact the bitcoin worth and Bitcoin mining?
12:32 After 2140, when the Bitcoin block reward is zero and all cash have been issued, ought to we anticipate transaction charges to rise, in an effort to preserve an incentive to safe the Bitcoin community?

These questions are from the second and fifth periods of MOOC 11, which occurred on February seventh and March 1st 2021, respectively. If you would like early-access to talks and an opportunity to take part within the month-to-month reside Q&As with Andreas, develop into a patron:

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Superior Bitcoin Scripting Half 2: SegWit, Consensus, and Trustware –
What’s Consensus: Guidelines with out Rulers –
Forkology: A Research of Forks for Newbies –
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What’s mining? –
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Iterating nonces and the block reward –
Miners, swimming pools, and consensus –
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Spam transactions and Baby Pays For Father or mother (CPFP) –
Energy consumption –
Photo voltaic vitality and mining in area –
Bitmain and ASICBoost allegations –

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has develop into some of the well-known and revered figures in bitcoin.

Observe on Twitter: @aantonop
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He’s the creator of two books: “Mastering Bitcoin,” printed by O’Reilly Media and regarded the most effective technical information to bitcoin; “The Web of Cash,” a e book about why bitcoin issues.

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MASTERING BITCOIN, 2nd Version:

Translations of MASTERING BITCOIN:

THE INTERNET OF MONEY, v1:

THE INTERNET OF MONEY, v2:

Translations of THE INTERNET OF MONEY:
Spanish, ‘Web del Dinero’ (v1) –
French, ‘L’web de l’argent’ (v1) –
Russian, ‘Интернет денег’ (v1) –
Vietnamese, ‘Web Của Tiền Tệ’ (v1) –

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37 Comments

  1. Hey andreas,

    could you discuss the relationship between the Price of Bitcoin, the hashrate and the total energy consumption due to mining at high prices?

    When I read the "Predictions" of 300,000 to 1,000,000 $/BTC I wonder how would the total energy demand will look like in this cases. Today the estimations on total consumpion are between 40 and 120 TWh in 2018 or 0.2 to 0,6 % of total global electricity consumption.

    Thanks in advance

    HKF

  2. I am a miner… Its simple- If the value of BTC is growing faster than Hash-Rate its good and vice versa… It's ONLY when Hash-Rate is going UP and the value of BTC is going down- THAT'S WHEN IT's BAD!

  3. HEy Andreas, I have a question.. If a person owns some BTC and there is a fork, he gets equal value of new fork for example 0.0019 btc is also 0.0019 BTC SV now ? could you explain how this works

  4. Andreas this video is great.. I can hear you fine and I can see you perfectly. Your Giving FREE KNOWLEDGE and People crying literally In the comments.. ungrateful entitled folks.

  5. Why can't this concept of continual hash power adjustment (basically reducing supply to meet demand) be implemented differently within other things, like price stabilization? Couldn't the liquidity of supply be adjusted (via timelocks) to meet demand, therefore stabilizing the price of all remaining liquidity? Then you could have a price-flexible "stablecoin" without any collateral or 3rd parties. Something like what BitBay has built into their dynamic peg system. Do you think this is possible Andreas?

  6. Andreas, I'd argue that the ability to turn electricity (a tax-deductible expense) into real time anonymous liquidity is enough incentive for many entities to mine at a loss. I think this phenomenon will only increase in future, making it unprofitable for the average miner

  7. Andreas; Great respect to you brother. I’ve seen most of your video contents and I’ve learned so much from you. You are so fond of decentralization (thus, equal to all); but I’ve been recently wondering; since electric power cost varies significantly globally; how is it possible to be fair for everyone worldwide?
    Thank you brother if you could explain this issue.

  8. Andreas,thank for awesome content as always. Question: What will happen to security of bitcoin network in case of major solar flare? For example this:"At 4:51 p.m. EDT, on Monday, April 2, 2001, the sun unleashed the biggest solar flare ever recorded, as observed by the Solar and Heliospheric Observatory (SOHO) satellite. The flare was definitely more powerful than the famous solar flare on March 6, 1989, which was related to the disruption of power grids in Canada. This recent explosion from the active region near the sun's northwest limb hurled a coronal mass ejection into space at a whopping speed of roughly 7.2 million kilometers per hour. Luckily, the flare was not aimed directly towards Earth."

  9. Andreas, just a tip: spend some money on a good microphone, maybe also a bit of light. A channel with information of such quality should have better looks/sound quality and it is relatively easy to achieve that.

  10. Andreas is just awesome at explaining stuff… Already knew that stuff, but it's fascinating to watch and learn how to well explaining things 😀

    Thx for your great and quality continuous contribution to the community!

  11. So as the block rewards reduce over time— We can expect only the most efficient miners to survive (constant downward pressure on the number of miners) and we can expect transaction fees to increase indefinitely with less and less miners able to profitably support the network? Sounds bad for the future of bitcoin. When transactions become too expensive again, users will almost certainly move their business to other currencies?? And at some point the mining pool will reduce to point where a few clever billionaires decide to short bitcoin and invest in a 51% attack and then they will clean up. Is that how bitcoin dies?

  12. Andreas, you are my favourite crypto personality. Please enlighten us, even by sharing some links of existing content, on who you think satoshi is / was, or was not? And your opinion of btc sv?

    Also, do you think gold backed crypto coins would be a good thing, and are they too centralised to be a crypto? Thank you!

    And do you think Dr Wright is correct saying btc is not a true crypto?

  13. well with the energy consumption we gotta be honest. miners demand power just like any other costumer on the market, and as it looks like it is worth it to consume this amout of power in order to creater sound money.

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