1/ Great article by @LaurentMT !
The TL;DR is that energy spent per block contributes not just to UTXOs belonging in that block, but retroactively to all global & past UTXOs.
The often-cited “energy spent per Bitcoin tx” number in many economic papers is flawed for this reason.https://twitter.com/LaurentMT/status/1034046547896492032 …
9/ In terms of economic cost, stock in mining hardware could also go up & down. A sustained bear market would likely cause the cost of acquiring ASICs to go down, while a bull market would do the opposite.
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10/ Mining centralization reduces the security provided by stock in mining hardware. But mining centralization does *not* reduce the security provided by stock in ledger history. A miner with majority hash rate still needs to spend tons of energy to go back far in history.
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11/ To sum it up, Bitcoin is protected by high stock-to-flow ratio in 2 dimensions: (i) Stock in ledger history - security can be weakened with advances in computing (ii) Stock in mining hardware - security can be weakened with bear markets & a high level of mining centralization
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