It was getting too expensive, to move things on-chain, so we stopped. Nobody wants to spend all their money moving their money.
People are even DCAing onto Lightning and just leaving it there.
Discussion
agreed, to spend small amounts, the fees would be silly.
In reality, people will use what works and is easiest for them.
My concern about where Bitcoin is heading is around the security of the network. How would miners be incentivized if in less than 4 years, their current earnings will halve, but costs will increase.
Would Bitaxe-type machines become more accessible? "a miner in every home" - idk where the economic incentive is, but someone needs to maintain it
Maybe you'll need AI-led quantum computing to mine and only a couple of organizations will be able to mine.
The more difficult the mining is, and the more expensive Bitcoin is, the fewer people can mine it and move it, I guess.
yeah I think consolidation is on the horizon
Can already see that with the way Bitcoin mining is become more and more consolidated.
i spent a lot of time thinking about this subject and even tried to make a monero-style "fair" algorithm with lower hardware requirements
but after some thought i eventually figured out it is good that the bitcoin PoW is relatively simple to implement, and is a specific thing
i mean, who is mining with GPUs anymore anyway? all the shitcoins have moved to "proof of stake" and those that didn't are at best like monero simply acting like a stablecoin
most of the GPU power now is going towardsAI clusters, mining shitcoins is old hat now, not valuable
implementing SHA256 at a lower price point is a rapidly accelerating business because bitcoin keeps on rising iahead of inflation and thus on balance miners are increasing in number and mining services like pools are also still growing steadily
nobody is using GPUs to mine because the simple fact is that's expensive to manufacture compared to a low power, specialty circuit, and mining is an easy parallelization problem, so the margin is extremely tight for profitability so the growth of supply of hash power is also in some kind of relation to the price and the stack vs sell ratios of bigger mining ops
because it's so simple and cheap to manufacture, all that has to happen is another 10x price rise and a swarm of new miners will flood into the market and the newcomers in the market like ocean will also find more workers to pool with and even though it looks like nothing's happening, the tail is getting squashed, steadily, and yet even at the same time someone has found a way to market small household size, the number of uses of waste heat that are saving people a lot of money on both domestic and commercial heating uses
i think that it helps to understand that greed and high time preference tend to go hand in hand and this favors good things for bitcoin and is why over time though there is some, many trying to milk it as part of their con in some way, whether shitcoiners or influencoors, it is making a difference in the world, to the point where the name came up several times in political campaigns and that means that we probably are actually on the cusp of a gold rush, actually
i'd rather see more SHA256 chips made than stupid GPUs personally, i can't wait for the reality check to dawn on the AI bubble, HBU
We should’ve been putting asics in everything we could for the last decade but we didn’t lol
wtf my doesn’t my toaster mine btc yet
How about those smart kitchen appliances…