Discussion
Misleading at first glance. But it is in log
If it weren't in log it would be a useless chart
Thank you!!
I guess the academic side of me says there should be a label on the axis to describe that it is log. but i admit this is practically evident/obvious if you have minimal experience and look at the values. If i showed this to most non-finance / non-technical people though they would have to be explained that the y-axis is log.
Anyways i agree, linear is useless. Just being pedantic or sthing
Really I should have provided a link to the chart:
This chart is awesome. I just tried using it to teach someone... Maybe something stuck, idk.
When you understand bitcoin is energy money and producea energy abundance and that energy is the fundamental and primary first input to our entire system you can't help but feel hopeful.
I don't think she understood when I said its energy money. This is the problem... I can't just keep it simple. It is simple... Suuuuper simple. But I just had to continue on and say that sats are a better way to compare energy prices because the cost of mining sats must approach the sats revenue from mining that unit. Simple... But too much. I have to learn to shut up.
Ive basically stopped talking about it proactively but happily discuss it with anyone who asks
Econ axiom :
MC = MR
Marginal cost approaches marginal revenue for any good in a state of perfect competition.
That's thinking in fiat. It's true, but let's change that to energy.
Now it's a cost/benefit analysis for pumping a barrel of oil. The energy return must be greater than the energy invested, or no one will do it. But the margin of energy return will fall to zero - when it costs the same amount of energy to pump a barrel as the barrel can produce, then there's no reason to spend that energy.
So, the axiom will still hold, and will even be more useful.
MCe = MRe
Bitcoin makes this easy to measure, while allowing for future advancements in efficiency.
One barrel of oil can produce X sats, so you are willing to invest up to X sats to pump that barrel.
The energy market will be denominated in sats because that's the simplest way to measure the profitability of an energy project.
Any energy source, anywhere on Earth or Luna, can make money by mining BTC and selling the sats at the speed of light.
BTC is pure energy money and it massively simplifies engineering calculations.
#Bitcoin #civilization #economics engineering #energy #future