Let’s push this further toward the theoretical extreme.
Suppose energy became one million times cheaper (and thus people could turn on a million times more miners—a million times the current hashrate for the same electricity cost).
The difficulty would simply adjust to make it a million times harder to find a block. So why would the price plummet if the supply stays the same?
I’m not sure about that. Seems to me that the absolute price of energy is not relevant, i.e. the only way you can make money (amortized over long timescales) is having access to cheaper energy than the average miner
Definitely! If you take the thought experiment further and imagine the cost of energy falling by like a factor of one million, at that point *everything* becomes cheap.
Except bitcoin. Because of the difficulty adjustment.
I’m contemplating it as a thought experiment. I think the price of btc would stay the same while the price of gold (and other commodities) would decrease
But bitcoin wouldn't actually become easier to produce because of the difficulty adjustment, right? Because if the cost of energy falls by a factor of one thousand, this means that (excluding the initial capex of mining rigs for simplicity) people can now afford to run a thousand times as many miners for the same electricity cost. The super weird thing is that for anything other commodity besides btc, this would tank the price. But for btc, the network simply adjusts the difficultly to make each hash harder to find in exact proportion to how much energy you throw at it.
Seems like privacy is upstream of fungibility
The existence of a commodity money whose supply is totally insensitive to the cost of production is *super weird*
Suppose as a thought experiment that the price of energy fell by a factor of one thousand.
What would happen to the price of gold?
What would happen to the price of Bitcoin?
Such a strong point near the end of the video about the civilizational fork in the road between digital credit money vs digital commodity money
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Oh really what’s it called?
That would be so cool if there was an AI inside your laptop that you could grant keyboard/mouse control to and that you could communicate with verbally, and it would understand what you were asking it to do in context of what was currently on the screen. Basically like you're always screen sharing with your AI helper. Since it would have access to everything this would probably only be workable if you were running locally or self hosting. In any case I wouldn't be surprised if UX converges on something like this in the near(ish) future
Very true
It's amazing how much of design is just being very clear about what you're trying to accomplish
"The end illuminates the means"
You didn’t come into this world, you came out of it
It seems like everything is always falling apart because everything *is* always falling apart.
What’s less obvious is that everything is also always coming into being.
Death is just more obvious than birth. We notice the absence of things we were used to more than the presence of things we weren’t, and this creates the perceptual bias that the world is out of balance.
Facing resistance is a signal you’re solving the right problem
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