Bitcoins have to be mined using electricity. They become harder to mine as time goes along, and there will never be more than a set number. They are almost infinitely divisible. It costs a few pennies to send a lot of money. Bitcoins are to banking as the Internet is to bookshttps://twitter.com/ReDNeQ/status/1149493025644531714 …
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Okay. But doesn't the currency hit a point of diminishing returns where the amount of bitcoin mined is worth less than the amount spent on the electricity to mine it? I'm trying to understand this, but haven't found a reliable source of info yet.
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I hope I understand this, then. That point of diminishing returns puts a soft limiter on the amount of bitcoin in the wild, so the currency relies on demand to increase the value of something that can be split into as small of a percentage as you want?
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The last Bitcoin will be mined in the year 2140. Demand will increase value to the point until a much less amount of world funds are in it, which will then reduce volatility. Your argument is about 100 years too early.
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I'm not making an argument. I'm trying to understand how this works.
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I would suggest starting with the basics. Most small time mining is no longer profitable because of the hashrate needed and the difficulty rate that Bitcoin is currently at. Future competition will keep network fees low once all are mined.
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I would suggest following
@aantonop on YouTube. He answers most of these questions in depth. -
Thanks. I'll do that.
End of conversation
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Isn't the mining the action of transaction processing? What happens in the case of diminishing returns above to transaction processing?
Thanks. Twitter will use this to make your timeline better. UndoUndo
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