Comment on Bitcoin mining is no longer profitable
Hirom@beehaw.org 3 weeks agoThanks for the refresher. I’m aware of the basics, but assumed the difficulty measured by the number of zeros could only increase. Apparently difficulty can decrease, and I’ve read it’s expected to decrease very soon to keep the system running a while longer.
Bitcoin’s creator was smart enough to design a system that automatically adjust to remain profitable for several years without intervention, but not smart enough to foresee social and environmental costs.
It’s a good example that illustrate why automated systems shouldn’t be left running unsupervised, even if it’s designed by the best of minds with the best of intentions.
It’s a good example that illustrate why automated systems shouldn’t be left running unsupervised, even if it’s designed by the best minds with the best of intentions.
The network is constantly supervised and mining is a competitive business. The network was built to adjust, and is working precisely as intended.
The network was built to adjust
Then why doesn’t it adjust to avoid negative social and environmental effects? My guess is that it’s because it’s not possible to adjust bitcoin’s algorithm, and that miners don’t have enough intensive to abandon bitcoin for something less destructive.
My understanding is that bitcoin’s core algorithm, which include the difficulty and consensus logic, cannot modified nor fixed in any way.
A hard fork is possible, which means leaving the bitcoin network and setting up an alternative (hopefully better) network with different result.
lol it can’t adjust on public approval. It’s software that runs. It’s valuable. If it wasn’t, people wouldn’t run it.
It can hard fork with a consensus mechanism change anytime someone writes one and people decide it’s the best path forward. Ethereum decided this and did this.
That’s not happening with Bitcoin because those that understand how it works agree it’s the best system to use.
I use Bitcoin as a store of value, and Solana for day to day stuff and financial investments like lending and liq providing. That’s my preference, for now. It’s a very fluid industry, nothing is set in stone, although Bitcoin appears to be pretty solidly the preferred secure store of value.
lol it can’t adjust on public approval. It’s software that runs.
It can. Software is written by people. Its authors can build it wigh an update mechanism.
Crypto currencies such have Tezos have a vote-based update mechanism and a community that periodically submits algorithm changes for approval.
Bitcoin doesn’t have a update mechanism that allows smooth change. Its take it or abandon it (ak hard fork). Peole can move away from it, and, it’s sad that so many people still haven’t.
The_Caretaker@lemm.ee 3 weeks ago
There are other methods of operating a blockchain, besides proof of work, which are much more energy efficient. Think of Bitcoin being like a coal fired power-plant and some other cryptos based on proof of stake being akin to solar panels.
Swedneck@discuss.tchncs.de 3 weeks ago
but also proof of stake is just taking off the mask and outright saying that rich people control the network