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36 sats \ 4 replies \ @SimpleStacker 11h \ on: Money Isn't a Measuring Stick, Idiots (TDE, Pete Earle) econ
Any comment on the connection between bitcoin production and energy?
I haven't worked out the math, but there is definitely a greater connection between bitcoin and some fixed measurable physical quantity than dollars.
Energy cost prevents each individual miner from reorganizing the blockchain, i.e. rolling back transactions etc. Proof of work is what makes the payments final. The link between energy and bitcoin value stems from fierce competition in this relatively straightforward business. Profit margins go to zero, block rewards plus transaction fees must cover the cheapest energy source.
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True, and that's intriguing (Vaclav Smil, energy= universal currency) but don't think it changes anything no?
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It might just be a different way of looking at things. Prices fluctuate, and thus the unit of energy's purchasing power fluctuates, but the unit of energy is still one unit of energy.
(I'm not even sure it's accurate to say bitcoin has any direct connection to a fixed quantity of energy though, I don't think it does... though it has a tighter relationship to energy than fiat)
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(I'm not even sure it's accurate to say bitcoin has any direct connection to a fixed quantity of energy though, I don't think it does... though it has a tighter relationship to energy than fiat) exactly, it's not very related to energy itself -- but sure, comparable it's OK since fiat got roughly zero
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