How much energy is one Bitcoin guaranteed to be backed by?
If you want to heat your house in the winter and go cash in a Bitcoin, how can you know they will give it to you in form of electrical energy credit over time and not all at once as kinetic energy to the face?
Bitcoiners claim BTC is backed by energy
Leo Jones
Luis Cooper
It's not they just say this because it makes them sound smart when it's actually just a shitcoiMYTDKn
Jack Wood
>heres your energy bro
Brody Bailey
*ahem*
Samuel Robinson
Ford seems to have been on the right track
Shame we have nothing like that still.
Also shame the pic doesnt include his vision of it... (continued on page six)
Ayden Baker
>If you want to heat your house in the winter and go cash in a Bitcoin, how can you know they will give it to you in form of electrical energy credit over time and not all at once as kinetic energy to the face?
You go to a region that has bitcoin mining as grid insurance.
They pre-purchase electricity futures and sell them back to the grid at a rate above the mining put option.
For example look at the hashrate today.
It is increasing because Texas is cooling down and their miners are coming back online after a hot summer.
Your bitcoin will not exchange as well in a region like Europe because their energy policy has failed and they aren't mining bitcoin there.
Gabriel Richardson
It's a spent energy receipt
Levi Jenkins
John Ortiz
Kind of yeah
The mining difficulty is a current representation of what's going into the network and from that you can determine what a good electricity price per sat is and what isn't.
Its all game theory to get humans onto the most efficient production and allocation of energy.
David Flores
So one Bitcoin is backed by different amounts of energy, depending on market rates at the time and region of where I cash it out?
Luis Murphy
Yeah, and the last variable is the location and culture of the people.
1 bitcoin closest to the kWh value in an energy rich area, but if you're on an island with no mining and limited features your bitcoin won't go as far.
Camden King
Shame, I hoped it had proper backing, like Dollars had when they were backed with gold. You could exchange same amount of dollars for same worth of gold coins every time at every bank.
Turns out Bitcoin is backed by energy in the same relation as dollars are backed by gold now, at a fluctuation market rate.
Hunter Rodriguez
>you can buy arizona iced teas with the USD
>"THE USD IS LITERALLY BACKED BY ARIZONA ICED TEA!!!!"
Jason Gutierrez
Gold was illegal to own from 1933 to 1971
Before that the actual currency was metal, but that isn't as efficient as ledgers.
It's a tricky game to keep a monetary order honest.
In gold's case it was never honest unless you held the physical in your hand.
In bitcoin's case it's 100% verifiable 24/7
The dollar/gold peg could never hold.
Things changed too rapidly and jews will always jew.
In Bitcoin's case with energy it's kino.
Humans need cheap energy to flourish, the difficulty adjustment keeps the blocks on time, and every 2 weeks the bitcoin engine switches gears to adapt to the inputs people are giving it.
Nicholas Jones
All this discussion and no one still has a number of how much energy one BTC is backed by.
Give it to me.
Even if BTC price goes to single digits, how much energy is it redeemable for?
Joules, Ws, kWh, ton TNT... whatever? I can convert.
Benjamin Green
Brayden Rivera
Turns out it isn't backed by energy. You can just buy energy with it at the current market rate if you want to.
If Bitcoin price drops to zero you can buy zero energy with it, that is 0 in ton TNT units.
For once we had a discussion with a real result in Any Forums
Bentley Gray
Nice captcha phonefag
Bentley Brown
You need to describe your inputs.
How much are you paying for electricity and how efficient are your mining chips.
From that you can determine your return on sats per kWh and that's your put option price for electricity.
When you have that figured out you purchase a bunch of electricity futures to match your miner demand and then have the option to sell them back for more.
Wyatt Watson
Electricity never had a put option before bitcoin.
Grids have to use peaker plants for grid demand and raise prices or mess with your thermostat or whatever they're doing in california.
With bitcoin you have the miners hashing and when the grid needs a boost they turn off their miners.
It's distributed grid demand insurance.
They work hand and hand and will make bitcoiners rich and bitcoin communities more efficient.
It's the best thing we got without question.
Angel Cooper
>if bitcoin price drops to 0 and I can't get items for the same price all over the world
You're an idiot and need to learn how a market is made.
Asher Mitchell
It’s backed by Federal Reserve forced entropy.
I use CPU and GPU cycles to run CAD software and FEA models in a productive capacity. I am able to use the result of the cycles to sell complex manufactured goods that increase the productive capacity of the economy. I get a basket of currencies in exchange for my productive widgets.
The Fed decided to monetize trillions of government debt spending on retardation americano blobs. Rational people fearing the Feds misguided money printing have captured many cheap compute cycles to create a fantasy currency to fight the Fed. Compute cycle cost has reached bubble territory on the hardware side and energy is starting to catch up. I am able to raise the price of my productive widget to offset the cost of expensive computer cycles and energy costs. Can Bitcoin do the same or will it plunge in value because it depended on cheap cycles to build network affect? TBD