Hi all,
Hoping someone could give an educated response or link to this subject.
These days, mining hardware costs a small fortune. Last time I checked miners on average need 8K$ to break even, and yes - some countries are way cheaper.
The fact that mining is expensive is good for the price, obviously.
One argument would be that the cost of global mining HW is and always will be high, and as BTC supply decreases - we have a good chance of deflation and keeping a high price afloat.
But, in year 2040 or 2100 when only a fraction of BTC are generated from mining, compared to today. A simple understanding would be that the BTC price would have to be really high to maintain the incentive to keep mining. Assuming the hashrate continues to grow and mining equipment being equally expensive. A high price is needed.
Another scenario that could be bad, would be miners shutting down which would affect the whole ecosystem negatively.
Plea se, educate me :)
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