Dynamics of Bitcoin mining
@article{Semret2022DynamicsOB, title={Dynamics of Bitcoin mining}, author={N. Semret}, journal={ArXiv}, year={2022}, volume={abs/2201.06072} }
What happens to mining when the Bitcoin price changes, when there are mining supply shocks, the price of energy changes, or hardware technology evolves? We give precise answers based on the technical forces and incentives in the system. We then build on these dynamics to consider value: what is the cost and purpose of mining, and is it worth it? Does it use too much energy, is it bad for the environment? Finally we extend our analysis to the long term: is mining economically feasible forever…
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