7/ For variance in market demand: In early-stage Bitcoin, block rewards subsidize network growth & hash rate is a direct function of price. In late-stage Bitcoin, hash rate is a function of price AND transaction (tx) volume - which together make up the fees.
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18/ Nevertheless, the trend is clear: we’re running into hard limits. a/ Practical limits of minimization. b/ Beyond these limits are other limits: energy efficiency limits, computational speed limits.
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19/ So what’s the best strategy for miners here? Absence of a major tech breakthrough, when we run into these limits, ASICs will likely become commoditized. In which case this variance will resolve itself out.
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20/ However, in the short to medium term, miners probably need large investments in chip design / manufacturing / supply chain to stay ahead of the curve.
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