Bitcoin : Energy inputs will always be the limiting factor.

Bitcoin : Energy inputs will always be the limiting factor.

In order to provide the economic incentive to mine (and thereby secure the network) the formula Hash(x) = Reward(x) or some variation must hold true.

Increasing hash rates for miners will naturally require increasing energy inputs, although advances in available technology can somewhat temporarily mediate those increases. But at whatever technological stage of equipment development available, the formula Hash(x) = Reward(x) holds true, as will the obvious corollary that Hash(x) = EnergyInput(x), with minor variations due to the economies of scale. Doubling your hash rate will generally require doubling your energy consumption unless moving to a more advanced technology.

There is no limit on the amount of hash a network can maintain. Although there is a numerical limit on the amount of reward available, this limit is an illusion. While the number of coins obtained may be finite, the potential value of each coin is not.

Only the Energy inputs remain to constrain mining. They will always be the limiting factor as the current state of our technology does not provide for unlimited energy. One day we may see families make financial choices based upon whether their energy consumption should be used for entertainment or for crypto mining, similar to the way they ration their dollar consumption today.

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Bitcoin is a distributed, worldwide, decentralized digital money. Bitcoins are issued and managed without any central authority.
FindCrypto scans the web for the latest Bitcoin news, so you can find all the latest and breaking news in one convenient location.Author: CannuDiggit

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