Sunday, August 3, 2025
Coin Insights
No Result
View All Result
  • Home
  • Crypto
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi
  • Web 3
    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    Enhancing Security in Online Gambling with Blockchain Technology

    Enhancing Security in Online Gambling with Blockchain Technology

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

  • Metaverse
    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    Experience to Earn: Everdome's Metaverse Frontier

    Experience to Earn: Everdome’s Metaverse Frontier

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    Council of Europe Highlights Metaverse's Impact on Privacy and Democracy

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

    Carrieverse and Disney Ink Content Deal

    Carrieverse and Disney Ink Content Deal

    SYKY Bridges Digital and Physical Fashion with Apple Vision Pro

    SYKY Bridges Digital and Physical Fashion with Apple Vision Pro

    Somnia Launches Playground App to Empower Metaverse Creators

    Somnia Launches Playground App to Empower Metaverse Creators

  • NFT
    Ethereum Collections Lead NFT Sales Today

    Ethereum Collections Lead NFT Sales Today

    how NFTs became a global brand and a Web3 “social currency”

    how NFTs became a global brand and a Web3 “social currency”

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Labubus have succeeded in every way that NFTs have failed

    Labubus have succeeded in every way that NFTs have failed

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    NFT sales surge to $574 million in July, second-highest in 2025

    NFT sales surge to $574 million in July, second-highest in 2025

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

    You Can Now Buy NBA Top Shot NFTs From Vending Machines in Japan

    You Can Now Buy NBA Top Shot NFTs From Vending Machines in Japan

  • Gaming
    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

    On-Chain Games Don’t Have a ‘Secret Sauce,’ YGG’s New Advisor Says

    On-Chain Games Don’t Have a ‘Secret Sauce,’ YGG’s New Advisor Says

  • Blockchain
    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    LFG Boosts Token Launches with Community Power

    LFG Boosts Token Launches with Community Power

    Polyhedra Network launches Proof Cloud in open beta

    Polyhedra Network launches Proof Cloud in open beta

    It’s a Different Sort of Olympics as Cryptographers Face Off in Polyhedra’s ‘Proof Arena’

    It’s a Different Sort of Olympics as Cryptographers Face Off in Polyhedra’s ‘Proof Arena’

    SoonVerse Partners with Arris to Enhance User Experience

    SoonVerse Partners with Arris to Enhance User Experience

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

  • AI
    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    ETH Daddy Discusses Ethereum and AI

    ETH Daddy Discusses Ethereum and AI

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    ChatGPT is a tad too enthusiastic about Ethereum’s prospects

    I asked ChatGPT to predict Ethereum’s prospects as billionaire holders accumulate

    UAE emirate launches new free zone for digital assets, Web3 and AI

    UAE emirate launches new free zone for digital assets, Web3 and AI

  • Guides
    What’s the Difference & Which Is Better to Trade?

    What’s the Difference & Which Is Better to Trade?

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

    What are Decentralized Autonomous Organizations (DAO)? The Pros, Cons, and Real-World Examples

    What are Decentralized Autonomous Organizations (DAO)? The Pros, Cons, and Real-World Examples

    What Is Copy Trading in Crypto? A Beginner’s Guide

    What Is Copy Trading in Crypto? A Beginner’s Guide

    A Step-by-Step Guide for Risk-Takers

    A Step-by-Step Guide for Risk-Takers

    What is Spot Trading in Crypto? A Beginner’s Guide to How It Works

    What is Spot Trading in Crypto? A Beginner’s Guide to How It Works

    How It Works and What to Watch Out For

    How It Works and What to Watch Out For

    Crypto Risk Management Strategies for Trading (2025)

    Crypto Risk Management Strategies for Trading (2025)

    What Is Crypto Staking? How to Earn Crypto by Holding It

    What Is DeFi Staking? Everything You Need to Know

  • Analysis
    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

    An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

    An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

    Solana, XRP and One Ethereum Rival Leading Institutional Inflows in 2023: CoinShares Data

    Solana, XRP and One Ethereum Rival Leading Institutional Inflows in 2023: CoinShares Data

    Estate of Bankrupt Crypto Exchange FTX Abruptly Stakes Over $144 Million in Solana (SOL)

    Estate of Bankrupt Crypto Exchange FTX Abruptly Stakes Over $144 Million in Solana (SOL)

    Dogecoin Bull run

    Here’s What Could Trigger the Next Dogecoin (DOGE) Bull Run, According to Crypto Strategist

    Benjamin Cowen Warns Majority of Altcoins Will Never See New All-Time Highs Again Amid ‘Serious Declines’

    Benjamin Cowen Warns Majority of Altcoins Will Never See New All-Time Highs Again Amid ‘Serious Declines’

    SEC Chair Gary Gensler Standing in the Way of Bitcoin ETFs, Says ARK Invest’s Cathie Wood

    SEC Chair Gary Gensler Standing in the Way of Bitcoin ETFs, Says ARK Invest’s Cathie Wood

    Top Trader Sees Bitcoin Skyrocketing 570% in Next Bull Market Amid Soaring US Debt Levels

    Top Trader Sees Bitcoin Skyrocketing 570% in Next Bull Market Amid Soaring US Debt Levels

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

  • Coin Marketcaps
  • Home
  • Crypto
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi
  • Web 3
    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    IOT in E-Commerce Market Is Going to Boom | Major Giants Amazon,Alibaba,eBay

    Enhancing Security in Online Gambling with Blockchain Technology

    Enhancing Security in Online Gambling with Blockchain Technology

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    Blushush by Sahil Gandhi and Ohh My Brand by Bhavik Sarkhedi Partner to Revolutionize Brand Strategy and Personal Branding

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

    How to Play Treeverse: Beginner’s Guide to Gameplay, NFTs, and Tokenomics

    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    Intellivix Targets Global AI Surveillance Market with ‘False Alarm Elimination’ Gen AMS

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The Future of Gambling: How Casino Sites Are Leveraging Web3

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    The most potentially profitable investment method in 2025 is through PairMiner crypto cloud mining, earning passive income daily.

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    GameFi Q1 2025 Report: User Growth, Chain Activity, and Revenue Trends

    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

    Brain-Computer Interface Market Value, Trends, and Demand Insights | Scope By 2032

  • Metaverse
    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    Shib: The Metaverse – Part of the Expanding Shiba Inu Ecosystem

    Experience to Earn: Everdome's Metaverse Frontier

    Experience to Earn: Everdome’s Metaverse Frontier

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    Beyond Bots: Meta Motivo and the Dawn of Humanlike Digital Life

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    Exploring NetVRk: What Is Behind This AI-Driven Virtual Universe?

    Council of Europe Highlights Metaverse's Impact on Privacy and Democracy

    Council of Europe Highlights Metaverse’s Impact on Privacy and Democracy

    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

    Meta Cancels Next-Gen Headset Amidst Changing Market Landscape

    Carrieverse and Disney Ink Content Deal

    Carrieverse and Disney Ink Content Deal

    SYKY Bridges Digital and Physical Fashion with Apple Vision Pro

    SYKY Bridges Digital and Physical Fashion with Apple Vision Pro

    Somnia Launches Playground App to Empower Metaverse Creators

    Somnia Launches Playground App to Empower Metaverse Creators

  • NFT
    Ethereum Collections Lead NFT Sales Today

    Ethereum Collections Lead NFT Sales Today

    how NFTs became a global brand and a Web3 “social currency”

    how NFTs became a global brand and a Web3 “social currency”

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Pixel Vault Removes CEO Following Self-Dealing and Rug Pull Accusations

    Labubus have succeeded in every way that NFTs have failed

    Labubus have succeeded in every way that NFTs have failed

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    CryptoPunks Floor Price Hits 3-Year High of $208,000

    NFT sales surge to $574 million in July, second-highest in 2025

    NFT sales surge to $574 million in July, second-highest in 2025

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    Crypto Scammer Gets Prison Time for Swiping NFTs, Coins via Hacked X Accounts

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

    CryptoPunks price surges to $200k, $PUNKS loaner Gondi accused of facilitating chandelier bids

    You Can Now Buy NBA Top Shot NFTs From Vending Machines in Japan

    You Can Now Buy NBA Top Shot NFTs From Vending Machines in Japan

  • Gaming
    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    TaskOn Joins EPHYRA to Elevate AI-Powered Gaming Experience

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    The Squid Fighter game is taking Telegram by storm — join the fight and claim your NFT before it’s too late!

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    Early Off the Grid Skin Holders Are Cashing In – Will You?

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    This Game Lets You Relive the Ethereum Story Through Vitalik Buterin’s Eyes

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    NFTs at Your Fingertips: Inside Japan’s NFT Vending Machine Trend

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    PEPE GAMES Integrates with GaFin to Power the Meme Gaming Hub

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    A Pressure Group Forced Steam to Remove Adult Games. It’s Coming After Crypto Next

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

    NFTs Stage a Summer Comeback: Blue-Chips Reclaim Spotlight in July Rally

    On-Chain Games Don’t Have a ‘Secret Sauce,’ YGG’s New Advisor Says

    On-Chain Games Don’t Have a ‘Secret Sauce,’ YGG’s New Advisor Says

  • Blockchain
    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    MetaMask Users Can Now Link Binance and OKX Accounts to Their Portfolio Dashboard

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    NetMindAI Partners with Neurochain AI to Revolutionize Decentralized AI Services

    LFG Boosts Token Launches with Community Power

    LFG Boosts Token Launches with Community Power

    Polyhedra Network launches Proof Cloud in open beta

    Polyhedra Network launches Proof Cloud in open beta

    It’s a Different Sort of Olympics as Cryptographers Face Off in Polyhedra’s ‘Proof Arena’

    It’s a Different Sort of Olympics as Cryptographers Face Off in Polyhedra’s ‘Proof Arena’

    SoonVerse Partners with Arris to Enhance User Experience

    SoonVerse Partners with Arris to Enhance User Experience

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Metaplex Deploys Product Suite on Sonic SVM, Enhancing Solana’s Gaming Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

    Space and Time Becomes ZK Coprocessor in Karak’s Ecosystem

  • AI
    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    Bitcoin Miner Bit Digital Diversifies Into AI for ‘Substantially Higher Margin’ Than Mining

    ETH Daddy Discusses Ethereum and AI

    ETH Daddy Discusses Ethereum and AI

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    How decentralization can mitigate ‘dystopic’ artificial intelligence risks: SingularityNET exec

    ChatGPT is a tad too enthusiastic about Ethereum’s prospects

    I asked ChatGPT to predict Ethereum’s prospects as billionaire holders accumulate

    UAE emirate launches new free zone for digital assets, Web3 and AI

    UAE emirate launches new free zone for digital assets, Web3 and AI

  • Guides
    What’s the Difference & Which Is Better to Trade?

    What’s the Difference & Which Is Better to Trade?

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

    Think Your Cold Wallet Is Safe? Not If You Make These 7 Mistakes

    What are Decentralized Autonomous Organizations (DAO)? The Pros, Cons, and Real-World Examples

    What are Decentralized Autonomous Organizations (DAO)? The Pros, Cons, and Real-World Examples

    What Is Copy Trading in Crypto? A Beginner’s Guide

    What Is Copy Trading in Crypto? A Beginner’s Guide

    A Step-by-Step Guide for Risk-Takers

    A Step-by-Step Guide for Risk-Takers

    What is Spot Trading in Crypto? A Beginner’s Guide to How It Works

    What is Spot Trading in Crypto? A Beginner’s Guide to How It Works

    How It Works and What to Watch Out For

    How It Works and What to Watch Out For

    Crypto Risk Management Strategies for Trading (2025)

    Crypto Risk Management Strategies for Trading (2025)

    What Is Crypto Staking? How to Earn Crypto by Holding It

    What Is DeFi Staking? Everything You Need to Know

  • Analysis
    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

    Bitcoin Sees Historic Rise in Shark and Whale BTC Wallets, Records New High: Santiment

    An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

    An SBF Testimony Could Add ‘Decades’ to His Prison Sentence, According to Lawyer – Here’s Why

    Solana, XRP and One Ethereum Rival Leading Institutional Inflows in 2023: CoinShares Data

    Solana, XRP and One Ethereum Rival Leading Institutional Inflows in 2023: CoinShares Data

    Estate of Bankrupt Crypto Exchange FTX Abruptly Stakes Over $144 Million in Solana (SOL)

    Estate of Bankrupt Crypto Exchange FTX Abruptly Stakes Over $144 Million in Solana (SOL)

    Dogecoin Bull run

    Here’s What Could Trigger the Next Dogecoin (DOGE) Bull Run, According to Crypto Strategist

    Benjamin Cowen Warns Majority of Altcoins Will Never See New All-Time Highs Again Amid ‘Serious Declines’

    Benjamin Cowen Warns Majority of Altcoins Will Never See New All-Time Highs Again Amid ‘Serious Declines’

    SEC Chair Gary Gensler Standing in the Way of Bitcoin ETFs, Says ARK Invest’s Cathie Wood

    SEC Chair Gary Gensler Standing in the Way of Bitcoin ETFs, Says ARK Invest’s Cathie Wood

    Top Trader Sees Bitcoin Skyrocketing 570% in Next Bull Market Amid Soaring US Debt Levels

    Top Trader Sees Bitcoin Skyrocketing 570% in Next Bull Market Amid Soaring US Debt Levels

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

    The #1 CopyTrading Exchange-Bitget Turns 5, $100 Bonus for Newcomers

  • Coin Marketcaps
No Result
View All Result
Coin Insights
No Result
View All Result
Home Mining

Energy sets the value of bitcoin and bitcoin sets the value of energy

December 6, 2024
in Mining
28
Energy sets the value of bitcoin and bitcoin sets the value of energy
585
SHARES
3.2k
VIEWS
Share on FacebookShare on Twitter

Early in our thinking about the interaction between bitcoin and energy it became obvious to me that the value of bitcoin was fundamentally underpinned by the amount of energy that went into producing the bitcoin. As with any free market system, the value of a widget (in this case bitcoin) is determined by the cost of producing the widget plus the various levels of profit margin needed to get from manufacturing to the consumer. If someone has an innovative ability to supply something that no one else can and there is a large demand for this product then they have the ability to extract more profit based upon the scarcity of the supply relative to the demand. If the innovation is not sufficiently proprietary then others will recognise this arbitrage opportunity and seek to satisfy some or all of the demand. Over some period of time, we expect the ecosystem of producers to compete with each other for demand until a point is reached where the price of the product reflects the minimally acceptable level of profit margin for all participants in the production, supply, and sales chain. Additional innovations in production technique, material sourcing, or labour costs may give a temporary advantage to one producer over others and they can enjoy a period of greater profitability – that is until the other producers implement similar advantages and the overall price for the product gets driven lower.

READ ALSO

Bitcoin Miners’ Profit Margin Reaches Highest Level in Recent Times – What Does This Mean?

Trump-Backed American Bitcoin Nears Public Listing as Gryphon Sets Merger Vote Schedule

This is what Adam Smith called the invisible hand or more modern economic thinkers call the economic equilibrium principle. If actors in a truly free market system (something we seldom actually achieve) act in their own interests by chasing profits, these actions will ultimately lead to a societal benefit through the satisfaction of demand at the point of optimum economic value. While we may never reach a truly optimal point of economic exchange of value, we certainly see the benefit of decreasing prices and increasing quality (especially in technical terms) in industries ranging from transportation to computing. My father bought an IBM PS/2 Model 25 with a 16 colour display and 10MB of storage space in the late 1980’s for around $7,000. Today, forty years later, a $70 Asian smartphone exceeds every capability of that IBM by many orders of magnitude for 1% of the cost. This is one aspect of the deflationary effect of technology that Jeff Booth discusses in his book The Price of Tomorrow.

While a computing device can increase in capabilities by 100,000% while decreasing in cost by 99% in the space of 40 years, why can’t we say the same thing of the automobile?

I drive a 1977 Range Rover that cost around $14,000 when it was new. Nearly 50 years later, the current model of Range Rover costs about 10 times that amount but delivers only marginally increased capabilities. Why did automobiles not experience the same technological deflationary effect as computers? In large part because the cost of the raw materials to produce a car including steel, aluminium, copper have all increased in that same time frame. In addition, the cost of running a factory to produce cars and the cost of transporting a 2 tonne vehicle from manufacturing to the point of sale have all gone up significantly in that period of time.

While you can’t get a comparable Asian SUV brand new for $14,000 today, you can get a very capable SUV for about twice that amount with significantly greater comfort and technical features versus my spartan 70’s off roader. In 1977 the most basic VW Beetle cost around $3,000. Similar low-end cars today from Asian manufactures with similarly sparse specifications tend to be around the $6,000 price point. What is hard to see with these numbers is the inflationary effect of the devaluation of currency – in this case the US dollar. A dollar in 1977 effectively had the spending power of $5.19 today or, said another way, a 2024 dollar has the same spending power of $0.19 in 1977. That is an 80% reduction in spending power. This means that a $6,000 basic car in 2024 would be priced at $1,140 in 1977 dollars. By the way, the $7,000 dollar IBM would have cost over $35,000 in 2024 dollars making the $70 smartphone an absolute steal!

See also  High-risk DeFi loans surge: Is Bitcoin, Ethereum headed for volatility?

What is it about a computer that allowed its technical deflationary effect to so far outpace inflation while the automobile could not achieve the same result? In short, the reason is twofold: energy and the scarcity of resources. It takes about 278kWh of energy and 120g of raw materials to produce one smartphone. A car takes around 17,000kWh of energy and 5,000,000g of raw materials to be produced (according to MDPI). Both products will end up with a similar profit margin for the manufacturer of roughly 10%. While technology can solve a lot of challenges of efficiency or miniaturisation, it cannot fundamentally reduce the quantity of physical and energy commodities that need to go into the production of something the size of a car.

In the same way, bitcoin has a fundamental cost of production that is driven by the amount of energy required to produce one bitcoin. While we are continually making progress with respect to the efficiency of the machines we use to convert energy into bitcoin (we have seen an increase in efficiency of around 83% from 2019-2024), the growth of the network hashrate has still driven up the amount of energy needed to produce 1 bitcoin to around 800,000kWh. That sets the intrinsic value of a Bitcoin produced in late 2024 at around $66,000 including a profit margin of roughly 10% for the average producer.

Does that mean that the current price of bitcoin is determined solely by the cost of producing a bitcoin?

Of course not; but it does play a critical role in setting the value of a bitcoin. The cost of production and the current market price have reached a point of equilibrium where the producer is able to make enough margin to continue to produce in their own self interests while the market is able to benefit from a fairly priced product. The amazing thing about the bitcoin network is that it is one of the only true free-markets in existence. Absent the ability for an actor to monopolise or governments to exert control over the market, the invisible hand will continue to push these two forces towards this state of equilibrium. This means that we can understand the true value of a bitcoin by understanding the cost of the energy required to produce a bitcoin. In this way, energy effectively values bitcoin.

Since I have already brought you into my worldview of thinking about most things from the perspective of a Land Rover, let me continue with that approach as we consider the other side of this Joule Paradox. As I said, I drive a 1977 Range Rover (what is now referred to as a Range Rover Classic Suffix D). I bought the truck here in Kenya about 5 years ago for right around $5,000. It was completely intact, unmolested, and 100% rust free. It was the equivalent of what is often referred to as a barn find – a perfect specimen for a functional restoration. In the Kenyan market I paid a bit above the going rate for a similar car due to its condition. If I were to attempt to purchase a similar vehicle in the UK market (assuming you can find a rust-free example still) it would have cost me significantly more. Fully restored in original condition in Kenya the truck might be worth $15,000 on the best day, a perfectly restored example in the UK would likely cost 10 times that amount. Why is there such a disparity in the value of two essentially identical things? In short, it is because of the isolation of economies.

See also  A bitcoin mining behemoth makes buy to get even bigger

The economic pool that I have to work within here in Kenya does not value this vehicle the same way that the economic pool in the UK does. If I could just send the truck across my Starlink connection to the UK, I could make a lot of money from this arbitrage opportunity. However, vehicle shipping doesn’t work like that. For me to move this truck from my Kenyan economic pool to the UK economic pool would require a tremendous amount of time (dealing with government paperwork on both ends), transportation expense, and a multitude of unforeseen expensive issues in making sure that the quality of my Kenyan-performed work would meet the far more rigorous requirements to operate a vehicle in the UK. Would it make financial sense? Possibly. Is it economically worth the effort for me? Definitely not. Plus, I really love the truck so I emotionally over value it.

Energy suffers from this same isolation of economies. If a natural gas producer in West Texas is trying to sell electricity into their regional pool at the same time that the wind is blowing and the sun is shining across the state, the value for their unit of energy can actually go negative. This means that they would have to pay someone to take their energy. At the very same point in time, someone charging their electric car in California may be paying a peak-demand surcharge for electricity that doubles their cost of energy. The Californian Tesla owner would very much love to have cheaper energy from Texas and the Texas producer would love to charge even a few cents for their power to anyone that would buy it. Unfortunately, these two energy pools operate in isolation. You can’t move a joule of energy from the Texas pool to the California pool without a lot of government paperwork and transportation costs. The arbitrage opportunity can’t be realised.

Rural power station with bitcoin mining in Zambia.

The same is true for a small hydro energy producer in Northwestern Zambia, they are isolated in a very small economic pool. They can produce more energy than they can sell to the local community but there is no one else other than the community to buy their electricity. Even if they offered it for $0.01, no one would take it. Meanwhile, 100km away, another village is being charged nearly $1.00 per kWh to get electricity from a solar mini-grid. Those villagers would love to have some cheap electricity. Unfortunately, you can’t move a joule of energy across 100km of bumpy, dusty African roads. The arbitrage opportunity is lost due to economic isolation.

Although I doubt that Satoshi thought about it this way, the bitcoin mining network is effectively an adapter to connect any isolated energy pool into a global marketplace. By simply plugging in a mining machine and connecting it to the internet, you can now sell your electricity to an always willing buyer. These two simple pieces of technology allow for energy pools to be linked in a way that hasn’t really existed before. Bitcoin is a non-government-controlled, internet-enabled, real-time energy market that is open 24/7, 365 days a year.

See also  Bitcoin Miners Have Diverse Operations

At any point in time, the invisible hand of the market will determine what is the going hashprice. This is the amount of bitcoin paid to a miner for submitting 1TH/s of compute power for 1 day. This value represents how much a miner can earn from running their machines and – thanks to mining pools – this amount is payable in very small units of work. If you run a 100TH/s machine for 1 hour then you will earn 1/24th of the hashprice paid directly to your bitcoin wallet. This is true anytime of the day and from anywhere on earth. Using this hashprice and knowing the efficiency of your mining machine, you can know with absolute certainty how much the bitcoin network is willing to pay you for any kWh of electricity that you want to sell.

As an example, as of 7:34am East Africa Time on October 5th, 2024, the bitcoin network will pay you $0.078 per kWh if you are using a 24J/T Whatsminer M50s and $0.103 per kWh if you are using a 18J/T Antminer S21. Those numbers will fluctuate with the change in bitcoin price, but then it is up to you to decide if you can get a better offer from your local economic pool. Willing buyer, willing seller as they say.

By acting as the real-time marketplace for internet-enabled energy, the bitcoin network allows us to complete the Joule Paradox: energy sets the value of bitcoin and bitcoin sets the value of energy.

Notice that I said value and not price. An old friend of mine used to frequently say that price is what you pay and value is what you get. The same is true here. The value of a bitcoin is based upon the energy inputs and production costs but the market determines the price. Similarly, bitcoin determines what the minimum value for a unit of electricity is but the seller determines whether they will accept that price or sell to someone else for more.

In thinking about the relationship between bitcoin and energy within this paradox, we start to see why the proof-of-work model that Satoshi chose to implement and the system of automated market regulation through the difficulty adjustment is so genius. If either of these features was missing from bitcoin then we would not have the highly valuable asset that we have today. It all comes back to this simple realisation, energy is the fundamental, base commodity upon which everything of value is produced and bitcoin is the most pure embodiment of energy in a monetary form. If we took the energy out of bitcoin then bitcoin would be no better than any other fiat system of money. Remember that when someone tries to tell you that ethereum is the more environmentally friendly cryptocurrency. Energy is the true source of value and no other monetary system is built on energy.

This is a guest post by Philip Walton. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.

Tags: BitcoinEnergysets

Related Posts

Bitcoin Miners’ Profit Margin Reaches Highest Level in Recent Times – What Does This Mean?
Mining

Bitcoin Miners’ Profit Margin Reaches Highest Level in Recent Times – What Does This Mean?

August 3, 2025
Trump-Backed American Bitcoin Nears Public Listing as Gryphon Sets Merger Vote Schedule
Mining

Trump-Backed American Bitcoin Nears Public Listing as Gryphon Sets Merger Vote Schedule

August 3, 2025
Bitcoin mining difficulty hits all-time high
Mining

Bitcoin mining difficulty hits all-time high

August 3, 2025
Bitcoin Miners Raked in $1.66B in July—Best Haul Since April 2024 Halving
Mining

Bitcoin Miners Raked in $1.66B in July—Best Haul Since April 2024 Halving

August 3, 2025
Bitcoin mining difficulty hits ATH, but is projected to drop in August
Mining

Bitcoin mining difficulty hits ATH, but is projected to drop in August

August 3, 2025
Bitcoin Miner Profits Hit Highest Monthly Mark Since Halving: JP Morgan
Mining

Bitcoin Miner Profits Hit Highest Monthly Mark Since Halving: JP Morgan

August 2, 2025
Next Post
Pudgy Penguins To Issue A Token Called PENGU This Year On Solana

Pudgy Penguins To Issue A Token Called PENGU This Year On Solana

Comments 28

  1. miiyazuko baddiehub porn says:
    8 months ago

    Baddiehub Hi there to all, for the reason that I am genuinely keen of reading this website’s post to be updated on a regular basis. It carries pleasant stuff.

    Reply
  2. a9w6i says:
    2 months ago

    where can i get generic clomid price can i buy clomiphene without prescription how much does clomid cost without insurance can i buy clomid without dr prescription cheap clomid online order clomiphene without a prescription where buy cheap clomid pill

    Reply
  3. where is the best place to buy generic cialis says:
    2 months ago

    The thoroughness in this draft is noteworthy.

    Reply
  4. can you take flagyl and penicillin together says:
    2 months ago

    The thoroughness in this break down is noteworthy.

    Reply
  5. hx6sv says:
    2 months ago

    order generic zithromax 500mg – order ciprofloxacin for sale order metronidazole 200mg generic

    Reply
  6. c24iw says:
    2 months ago

    oral semaglutide 14 mg – periactin medication periactin 4mg without prescription

    Reply
  7. 27l33 says:
    2 months ago

    motilium cost – flexeril cheap buy cheap generic cyclobenzaprine

    Reply
  8. yawhz says:
    2 months ago

    buy generic inderal 10mg – buy plavix 75mg without prescription buy generic methotrexate

    Reply
  9. bu1i7 says:
    1 month ago

    amoxicillin drug – amoxicillin tablets combivent 100 mcg tablet

    Reply
  10. jqbag says:
    1 month ago

    azithromycin medication – cost tinidazole 300mg order nebivolol

    Reply
  11. dc7ji says:
    1 month ago

    augmentin where to buy – https://atbioinfo.com/ ampicillin where to buy

    Reply
  12. z5jid says:
    1 month ago

    where can i buy nexium – https://anexamate.com/ buy generic esomeprazole

    Reply
  13. 33ui2 says:
    1 month ago

    order coumadin 5mg pills – anticoagulant order hyzaar generic

    Reply
  14. mzbqx says:
    1 month ago

    purchase meloxicam generic – https://moboxsin.com/ where can i buy meloxicam

    Reply
  15. w1rbn says:
    1 month ago

    generic prednisone 5mg – inflammatory bowel diseases prednisone online buy

    Reply
  16. 3cn52 says:
    1 month ago

    online ed pills – fastedtotake buy ed medication

    Reply
  17. chk1l says:
    1 month ago

    buy amoxil paypal – buy amoxicillin tablets buy amoxicillin medication

    Reply
  18. juihu says:
    3 weeks ago

    buy fluconazole 100mg generic – diflucan online buy diflucan 200mg price

    Reply
  19. 6p49u says:
    3 weeks ago

    cenforce 100mg price – https://cenforcers.com/ buy generic cenforce 50mg

    Reply
  20. ycgra says:
    3 weeks ago

    cialis 100 mg usa – cialis strength cialis and alcohol

    Reply
  21. Connielet says:
    3 weeks ago

    zantac drug – buy zantac without a prescription ranitidine 300mg cost

    Reply
  22. qsw5m says:
    3 weeks ago

    cialis black 800 to buy in the uk one pill – https://strongtadafl.com/ what is cialis tadalafil used for

    Reply
  23. Connielet says:
    3 weeks ago

    This is the big-hearted of literature I truly appreciate. https://gnolvade.com/es/comprar-kamagra-generico/

    Reply
  24. sfsui says:
    2 weeks ago

    50mg sildenafil – viagra 50 mg coupon cheap viagra cialis online

    Reply
  25. Connielet says:
    2 weeks ago

    This website really has all of the bumf and facts I needed about this thesis and didn’t positive who to ask. https://ursxdol.com/get-cialis-professional/

    Reply
  26. 9igcr says:
    2 weeks ago

    Greetings! Very productive par‘nesis within this article! It’s the little changes which will obtain the largest changes. Thanks a lot quest of sharing! https://buyfastonl.com/gabapentin.html

    Reply
  27. v7vdr says:
    2 weeks ago

    More posts like this would make the online space more useful. https://prohnrg.com/product/diltiazem-online/

    Reply
  28. 4m2q7 says:
    1 week ago

    More posts like this would prosper the blogosphere more useful. https://aranitidine.com/fr/acheter-cenforce/

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

POPULAR NEWS

Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

Memecoin Project Obama6900 (OBX) Joins the Fight Against Malaria with Long-Lasting Insecticidal Nets (LLINs)

October 28, 2023
Tezos 2023 Outlook: An Overview of Tezos (XTZ)

Tezos 2023 Outlook: An Overview of Tezos (XTZ)

November 2, 2023
UK risks regulating NFTs the wrong way, says Mintable CEO

UK risks regulating NFTs the wrong way, says Mintable CEO

October 30, 2023
How to Earn Keys to Boost Your HMSTR Airdrop

How to Earn Keys to Boost Your HMSTR Airdrop

September 10, 2024
Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

Capturing the Growth of Asset-Backed Finance via Blockchain-Enabled Opportunities

August 3, 2024

Don't miss a single story

Subscribe to our free Newsletter

EDITOR'S PICK

Bitcoin Ordinals Mint for Quantum Cats Delayed Again—What’s Going On?

Bitcoin Ordinals Mint for Quantum Cats Delayed Again—What’s Going On?

February 2, 2024
Floki’s Valhalla Fires Up 4-Week Programmatic Display Push Across Target Markets

Floki’s Valhalla Fires Up 4-Week Programmatic Display Push Across Target Markets

June 19, 2025
The big Bitcoin sell-off? Whales abandon ship as BTC halts at $62K

The big Bitcoin sell-off? Whales abandon ship as BTC halts at $62K

May 15, 2024
Assessing the impact of $1.86 billion Bitcoin, Ethereum Options expiry

Assessing the impact of $1.86 billion Bitcoin, Ethereum Options expiry

August 17, 2024

About

Dive into the world of cryptocurrency. Our news site offers insights, trends, and updates to guide your journey into the realm of digital finance.

Follow us

Categories

  • AI
  • Altcoins
  • Analysis
  • Bitcoin
  • Blockchain
  • DeFi
  • Ethereum
  • Gaming
  • Guides
  • Metaverse
  • Mining
  • NFT
  • Other
  • Web 3

Recent Posts

  • Bitcoin Miners’ Profit Margin Reaches Highest Level in Recent Times – What Does This Mean?
  • Trump-Backed American Bitcoin Nears Public Listing as Gryphon Sets Merger Vote Schedule
  • Bitcoin mining difficulty hits all-time high

Newsletter

Don't miss a single story

Subscribe to our free Newsletter

  • Contact
  • Disclosure
  • Privacy Policy
  • Terms & conditions

© 2023 Coininsights.com - All rights reserved.

No Result
View All Result
  • Home
  • Crypto
    • Bitcoin
    • Ethereum
    • Altcoins
    • DeFi
  • Web 3
  • Metaverse
  • NFT
  • Gaming
  • Blockchain
  • AI
  • Guides
  • Analysis
  • Coin Marketcaps

© 2023 Coininsights.com - All rights reserved.