Replying to Avatar BHAVIK

Very good question and necessary for beginners to understand.

-First of all you need to understand that mining reward is not the security budget of Bitcoin Network. It is the “Reward” for mining blocks, awarded by Bitcoin Node Runners, currently 19,000 nodes running around the world on a simple $300 computer.

-Nodes have not employed miners to secure the Bitcoin Network. Miners are joining the network out of their own greed and spending electricity because Bitcoin network is giving Bitcoin reward every 10 minutes to solve a block.

And that reward is getting halved at every 4 years and still network is growing that shows that people are interested to run the miners and profiting from it and expanding the mining infrastructure.

Current hash rate is ~600 Billion Billion hash/s, this HashRate is growing 160% annually for the last 10 years. This computing network is running on roughly 20-25 GW of energy. 60-70% of these are renewables and wasted energy.

So clearly miners are making more money, otherwise they will stop mining blocks.

Some of the inefficient miners will have to turn off their machine because of less reward, it will decrease the selling pressure and Bitcoin price will increase.

So there is not hope that Price will increase.

Value of Bitcoin will increase because of the economical & game theoretical design of the “Bitcoin”.

It will keep becoming valuable to other assets because network is able to enforce strict supply in a permission-less and censorship resistant manner.

Bitcoin will keep growing.

Let me know if you have any questions. nostr:note1x0fx5z82tzjn933ccc08yqqc8ltl4ft7whm83adm5ep5hg04g8dsu5e8ef

Mining reward is not the security budget - What does this mean?

Miners are responsible for picking transactions from mempool, nodes just verify that.

"People" ate interested in run miners is not true. Big corporations do, people have been eliminated by ASICs only mining protocol.

Mining is profitable, is true. But that's the current state. Mining's profitability is decreasing with every halving. That's why mining went from people doing it in their basement to 2 companies doing nearly 60% of mining.

Again to the point that miners are not security budget, definitely it is. If US Govt spends few 100 billion (which is nothing for them) and setup mining rigs, they will quickly gain majority hash power and when they only allow KYCed transactions, mempool will keep getting filled up and my transactions will take not hours, rather days.

Mempool filling up also increases price, thus pricing out more users out of the network.

About the first line of your post - I am in bitcoin since 2014. And building distributed infrastructures for tech companies is one of my income sources.

And halving and bitcoin's usd price has any correlation threory goes out of the window when you open a Nasdaq 100 3X leveraged ETF chart vs bitcoin USD price.

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