Part 3: Miner hashrate efficiency growth.

Over the 6 years between 2018 and 2024 the efficiency of the top of the line miners grew from 98 Joules/TH with the S9, to 15 Joules/TH with the S21. This is an efficiency gain of 6.53 times.

Expressed as an annual efficiency improvement rate, that's 36.7% or 1.367^X.

This efficiency growth seen at the top of the market is likely to be experienced throughout the mining ecosystem as the old miners get cheaper to own and people upgrade.

This efficiency growth then offsets the growth of the hashrate talked about in part 2 as follows:

1.572/1.367 = 1.15

Meaning the real value increase of energy into the mining network over 6 years was about 15% a year on average. This applies to not only the cost of energy for new coins, but it is also reflected in a rise in the equivalent cost on the FIAT market for all coins.

Why? Because, as nostr:npub1s05p3ha7en49dv8429tkk07nnfa9pcwczkf5x5qrdraqshxdje9sq6eyhe famously says, everything trends towards it's marginal cost of production. Why would you sell anything for less than it costs to make it? If you have a rare item that costs more now than when you bought it, wouldn't you value it at its more recent production cost?

Continued in Part 4: The drive behind the growth in the mining network.

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