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Bitcoin is not battery

  • Counterpoint to [[Bitcoin is battery]]
  • Bitcoin is not a battery, but a bottomless sink for marginal-cost electricity
    • Price of Bitcoin is dictated by market dynamics and barely affected by electricity
    • Bitcoin is produced at a fixed rate
    • These two facts means that the economy of Bitcoin is not reliant on electricity and is something between arbitrage and auction
  • If miners put more electricity into mining Bitcoin, the rate of production remains constant but it does get more secure
    • Security can't be traded away later
  • Bitcoin will shift into cheaper forms of electricity but will not leave it for use
    • It will incentivize the creation of cheap power sources