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Author Topic: Variability of electricity costs a threat to decentralization?  (Read 560 times)
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November 01, 2013, 01:27:19 PM

I've been thinking about the whole mining game and everyone being able to participate and mine bitcoins and do their share to strengthen and secure the bitcoin network. While this all sounds nice in theory, mining does consume electricity and so one would expect that the future of mining will have to become concentrated in places which have the lowest electricity costs. Now don't you agree this threatens the entire concept of decentralization and bitcoin being made for and by the people? This way it would only be made by the people lucky enough to have access to almost free electricity, and that's not exactly my idea of decentralization. Right now the margins are still big enough for everyone to participate in mining and it's fairly decentralized, but this is going to change very soon and I can't help but feel this is going to cause problems looking ahead. What are your thoughts on this and are there ways to solve this problem?

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November 01, 2013, 01:34:03 PM

I think the exact opposite: it will drive efficiency (Gavin's Bitcoin-mining space heater) and decentralization of power generation (household-scale solar).

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