elvismercury

Genius. Although this doesn't solve the problem of, "it's cheaper to buy spot than to mine", but still good to remember

expatriotic

When we assume the block reward will become negligible what we're actually doing is projecting out today's purchasing power of the reward and concluding it's tiny.

I think that's the wrong way to think about it. Even though the reward will eventually be measured in sats. Those sats should be worth a lot more in purchasing power terms.

Currently the reward is 6.25 BTC. Using the fiat price as a proxy for purchasing power we can conclude that's worth about $400k. Compare that to the cost of electricity and we get the purchasing power.

What happens in a few halvings when the block reward is only 0.78 BTC? If we assume the purchasing power remains the same we conclude the reward is negligible. But it's a different story if 0.78 BTC can still buy the same $400k worth of electricity (in today's terms)

bitcoin

Bitcoin is completely changing how people remit money. (And that's a good thing)

When we assume the block reward will become negligible what we're actually doing is projecting out today's purchasing power of the reward and concluding it's tiny.

I think that's the wrong way to think about it. Even though the reward will eventually be measured in sats. Those sats should be worth a lot more in purchasing power terms.

Currently the reward is 6.25 BTC. Using the fiat price as a proxy for purchasing power we can conclude that's worth about $400k. Compare that to the cost of electricity and we get the purchasing power.

What happens in a few halvings when the block reward is only 0.78 BTC? If we assume the purchasing power remains the same we conclude the reward is negligible. But it's a different story if 0.78 BTC can still buy the same $400k worth of electricity (in today's terms)