Further thinking about #decentralization of #hashpower as a small individual miner using things like #bitaxe the point isn’t to become wealthy by running the hardware, but to help in terms of contribution to security of the network in an easily sustainable way where it doesn’t matter if you’re payed or not. The payment (regardless of size of block reward and subsidy) serves as a reward to those who are able to keep hashpower generating hardware running despite whatever conditions may present themselves, but it is not the true incentive. Enter the cockroach resilience like miners, running #cellphonechargers, keeping the hashpower going no matter what. One can only speculate what future development will yield in terms of small affordable hardware regarding energy use and hash power), but for now the small scale #bitaxe is as close as we have to that. View quoted note →

From a layperson’s perspective I’m not privy to the full nature of thermodynamics, it’s easy to imagine up ways in which the heat produced by a bitcoin miner can be re-utilized, but actually listening to people who know what they are talking about on it is fascinating. This is a great talk to listen to if you’re just now getting into bitcoin mining with things like the #bitaxe. I know a #bitaxe is only a small drop of water in the ocean but interesting to think of the implications of bitcoin mining can have on our energy infrastructure. On my journey to try to understand #bitcoin I’m starting to sense that as one heads further into the rabbit hole they find themselves being presented with more and more questions which with almost certainty just drive them further down into the rabbit hole as they seek out the answers.

As the cost of mining goes up in terms of energy cost, and the block reward (subsidy I think is the term I’ve heard) goes down, will mining become more decentralized and run on more dispersed smaller scale hardware? (Enter hardware like the bitaxe?) I’ve heard speculation block fee’s will go up over time too with competition for block space, so what will become a good UTXO size to have at a minimum? When the block subsidy is smaller than the fees being paid to the miners, will big miners still operate for competition on what is a chance to gather these fees, or will small miners at random become wealthy by running their own hardware? Piecing together this whole bitcoin thing little by little from an end user’s perspective.

The time of the small scale bitcoin miner is returning. Did Satoshi fathom such a thing happening from a hardware perspective?

If Bitcoin is considered energy money and represents the purest form of currency conducive to a truly free market economy, then all energy currently used in any way that does not directly contribute via powering Bitcoin mining equipment or indirectly through the capture of excess (waste) energy for use in Bitcoin production represents an opportunity cost over the long term. The question arises: should we prioritize using energy to power miners and utilize excess energy as a byproduct for other purposes, or should we focus on harnessing excess heat from current energy consumption processes for Bitcoin production, such as powering micro Bitcoin rigs? Currently, our infrastructure cannot support the former option, as the heat energy produced cannot be efficiently repurposed beyond local applications like space heating or drying fruit. Suppose, however, we could effectively capture and utilize this excess energy for processes such as transportation. What would such a scenario entail? Ideally, assuming the laws of physics allow, we might employ thermoacoustic, steam, or hot air engines powered by the energy output from ASICs attached to vehicles for transportation, and these ASIC’s are all powered off of an electrical grid whereby the cars have terminals they reach onto wires with. Alternatively, in a more feasible future scenario, we might use our optimized and efficient engines and energy sources for regular activities, while excess energy is captured using thermocouples or other efficient means to charge devices that power small ASICs. Individually unprofitable, these ASICs could collectively contribute to a more secure and utilized Bitcoin network through their network effect. What then of these micro rigs? Does the a central authority own the work performed by them or does each individual own the work performed by their ASIC?

1BTC=1BTC BTC per USD 1/$69,340 Sats per Dollar 1,442 Market Cap $1.37T

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