Quote:
Originally Posted by accord1999
It's not quite the direct connection; if every miner chose not to buy new equipment to increase their own hash rate, then the amount of power used remains the same.
But it's human nature that if the fiscal rewards are increasing (especially if its in terms of fiat) then many miners are going to invest in more equipment (and new ones start up) to try to catch that increase, resulting in a new increase of power used, up till the point where it reaches equilibrium of where it's only modestly profitable after accounting for electricity and capital costs.
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so really it would be a good thing if the money went down and less people were mining, it being hard to see how to justify using the power consumption of Norway in perpetuity in order to enable the function of a simple currency