Grandpa Wojtek! Good bear, helped poland fight the Nazis. View quoted note →

UTXOs before Hoes

Fake Wright has me blocked on Xitter! Don't know when, don't know why. But boy does it feel like glory! Welcome to law bitch!

How do you actually price oil/energy in #Bitcoin? We've heard many Bitcoiners talk about pricing oil/energy in BTC. But what does that actually mean? One options just do a simple conversion of the USD price of to BTC using current exchange rate. For example the current price per barrel of WTI oil is ~$75, converted to ~107,143 sats per barrel. But this isn't pricing oil in BTC terms, just accepting #bitcoin for payment. What happens if we use the opportunity cost of mining bitcoin instead? Warning, assumptions ahead - this is a thought experiment I found interesting and incorrect? Assumptions: - 1 Barrel of Oil contains ~1,700 kWH of usable electricity - Using Bitmain S21. 200TH/s @ 3500 W One day of running the S21 is 3.5kWh * 24 = 84kW. This lets us run the S21 for ~20.22 days (1,700/84), let's call it 20 days. Using a mining income calculator our daily income is estimated at ~36,000 sats. (I know I know, assumptions bro) 20 days * 36,000 sats = 720,000sats. My crude calculations (see the pun?) indicate one barrel of oil should be priced at 720,000 sats (~$500USD) at current block rewards/difficulty. Energy producers are being screwed by selling oil for USD instead of using it to mine Bitcoin themselves.

Nothing better than snacking and getting a scratch