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Author Topic: With great power comes a great electricity bill  (Read 4037 times)
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March 30, 2015, 03:25:53 PM

Satoshi has conceded in the past that Bitcoin mining does in fact "waste" power except in those cases where the computer rig is used to heat a dwelling.

I think the last paragraph says it best.... In the beginning everyone will mine and later only the people with the cheapest electricity in the coldest places will be left.

We have to appreciate Satoshi's vision and what he predicted will happen in the future.

Is it a waste..? Nope... not if you use it wisely. {Heating}  Wink

 It is used wisely {securing the blockchain} already.  Anyway, Satoshi was attempting to answer to critics and he isn't omniscient; he's a programmer.  Let's not elevate him to an undeserved status here by quoting him as point of fact on matters where he has limited expertise.  He also said, "If it's summer and you're using A/C then it's twice." <-- that is incorrect because it doesn't take the same quantity of energy to remove the waste heat the miner produces using A/C; it takes about one-quarter of the energy.  Also, warmth generators in cold climes isn't much of a stretch - genius prediction not required.  Please, that cannot be considered a "vision".

Sidehack is making progress! Buy him a burger to keep his energy up - 1BURGERAXHH6Yi6LRybRJK7ybEm5m5HwTr
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March 30, 2015, 11:13:47 PM

Is it a waste..? Nope... not if you use it wisely. {Heating}  Wink

Ancillary uses do not offset the "waste".  If a miner is able to recoup some of his hardware maintenance and electricity costs by using or selling the generated heat then he has simply become more efficient and increased his profit margin.  As other miners do the same, difficulty goes up.  The network will tend towards consuming 25 BTC + fees worth of real resources every 10 minutes.  Mining could perhaps be adapted to incorporate other computations (e.g. looking for primes) but the extent to which these computations are useful is the extent to which they offset costs and drive up difficulty to make room for "real" mining.
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The Gold Miner

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April 01, 2015, 09:40:39 PM

Miners are required to verify new transactions; the reward was to get them started.

Having one miner actually do the work (the block winner) and all the other miners (block losers) waste their efforts is the definition of "inefficiency".

 At first I thought you were ignorant but now I see you're just trolling. You and I arguing about those things we cannot change is also an inefficient use of our time but the beauty of it is that I can change that efficiency.  I'm done. Have fun.  lol Cheesy

I'm done too. There is no point in debating the obvious.  Cheesy

It's you who's fucking clueless man!!  Listen to a REAL miner, a guy who mines precious metals and gems.
Bitcoin was modeled after Gold mining, which, is an inneficient occupation, I know, I mine Gold along with SHA256.
What gold miners do is always improve their rigs to get the most yield for the least expenses...
At the end of the day, it's not who brings in the most loot, it's who bring home the most pay.
Yeah, I own two profitable mines, you??  Exactly, keep listening.

Gold's intrinsic value is around $20 but our fiat monetary system is based on gold reserves.
I guess only a few of us know Ft. Knox is virtually empty and its contents live in China and India now?
Today, Gold gets its value because, well, it's pretty, it's the best metal for electric connectors and used as a fiat hedge.
It also gets is origins traced all the way back to the bible and is always a sign of nobility.
The cost of commercial gold mining is also quite high... without the high price of Gold, miners wouldn't mine it and monetary system would collapse... I don't think most people know just how fragile it is.
A commercial gold mine runs at least $1,000 a day in... being conservative.
This would also put a lot of people out of work, if Gold tanked to below $1,000... for a while it did.
In those times, it's the small prospectors who make the most because their costs are much lower to begin with.

Guess what, you can mine gold for years and never find a smidgeon of Gold... that is the risk factor my friend.
At least mining Bitcoin, unless you mine solo, you're getting pay.
However, pooled mining is the equivalent of mining placer top gravel; a paycheck.
If you want to hit it big, one needs to either bet on an alts or gamble their power on solo.
Betting on solo with less than 100TH/s... THAT is a waste because you'll never get your $'s worth.
Even pools with around 1PH/s struggle getting one block every 3 days; the equivalent of mining Gold dusts compared to nuggets a century ago.

One just doesn't go dig a hole in the ground and expect to get rich in one season, it takes a lot of investment and dedication.
Those who think they do, well, they all talk and are all one hit wonder and never come back.
Besides, hardware double in efficiency every year, you're like when Edison tried to discredit Tesla by saying it's not as safe.
By failing to mention that Tesla Power could travel great distances and retain its charge much longer.

Pure life experience always trumps armchair know-it-fuck-alls.  Grin
If you get your money's worth it's not waste because you get what you pay for. #Capitalism

-I'd rather be mining
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