Author: Eric Voskuil 2018-09-17 19:36:15
Published on: 2018-09-17T19:36:15+00:00
The share of a miner's hash power is proportional to capital investment, not the newness of the investment. The efficiency of a new mine can outperform other miners, thus resulting in their departure, allowing the entry of the former. Energy consumption is regulated by the cost of capital, reward value, and the cost of energy. Higher efficiency mining does not reduce energy consumption, and proof-of-memory is pointless since it shifts most of the energy cost to hardware manufacture and shipment.Users can set a target hashrate, which can be less or more than the peak hashrate. As long as hashrate is rising and has not reached the target, miners will incrementally get the reserve fees. If hashrate remains the same or falls, then users get the reserve fees back. There exists a limit on hashrate for every level of mining rewards based on demand.No new miners will want to join once hashrate gets large enough because their share of the hashrate is too small to make a profit. Merge mining and proof of space can be quite efficient in the future. However, educating people to use fewer resources than they need is outside the scope of what the Bitcoin software protocol does.
Updated on: 2023-06-13T14:40:47.658687+00:00