Bitcoin computing power broke the first hundred EH/s, gold mining is at the time?

On September 19th, Blockchain data showed that Bitcoin's total network computing power exceeded 100 EH/s threshold for the first time to reach 102.8 EH/s, a record high. To know the power of the whole network, at the beginning of the year, it was still less than 40E. In the past few months, the whole network has reached a record high, and it has already broken through the 60E calculation power of 20,000 US dollars when Bitcoin reached the highest price at the end of 2017. But why, the computing power has doubled and even doubled, and the price of Bitcoin has remained near 10,000 US dollars. There is no new high. What is the gold rush?

To clarify this logic, we first briefly explain the bitcoin's total network computing power. In the Bitcoin system, the miners are responsible for the issue of Bitcoin's issuance, that is, investing in the calculation of hashing, and then getting the bitcoin system to issue rewards. When this reward is greater than the cost of expenditure, there will be more computing power. Compete for profit.

At the same time, the greater the decentralized computing power in the same period, the higher the cost of trying to account for most of the computing power to attack the Bitcoin network, which means that the bitcoin network is more secure. We know that the most important thing in a payment system is the security issue. The more secure the Bitcoin network, the higher the price expectations of all users for Bitcoin. When bitcoin prices remain stable, the network becomes more secure, prices are expected to rise, and vice versa.

The problem of network security is actually the cost of attack, that is, the cost of 51% of network attacks. (Do not do science here, interested in self-checking) If the cost of non-quantitative time such as mining machine deployment is temporarily excluded, the attacker mainly needs to pay the hardware cost, that is, the mining machine and the cost of electricity, in order to achieve the goal.

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Therefore, we study security issues and implement them into hardware costs and power costs.

In terms of hardware cost, Bitcoin's mining machine has become more popular with the improvement of performance and the early start of Bitcoin's market. The main reason is that the bear market at the end of last year digested the mining machine foam, and the mining machine was undervalued. State, so a large number of miners began to restart mining, and the performance of the miners purchased at this time is more than the performance of the old generation of mining machines. That is, in the case of the same performance, the hardware cost of the unit mining machine is reduced, or the hardware cost is the same, the performance of the mining machine is improved.

As mentioned earlier, the bitcoin network mining needs competition. The new mining machine hardware cost is relatively low, which makes people more motivated to mine, so a large number of people buy mining machines, but the number of mining machines cannot be ignored. Although the increase, that is, the increase in the total network computing power does not mean that the total price of the French currency in the mining machine market has increased in different periods. Compared with the entire mining market, the hardware cost required to occupy 51% of the computing power does not necessarily follow The total network's total computing power has increased.

Let's take a look at the cost of electricity. We know that it is still the season of the Yunnan-Guichuan flood season. Compared with the dry season at the beginning of the year, the electricity price in the region is obviously declining. The electricity cost required to run the mining machine is also obvious with the arrival of the flood season. Falling. Therefore, under the same electricity cost, the wet season can support more mining machines, which also promotes more computing power to join the Bitcoin network.

In fact, in the bitcoin mining system, there is always a low cost of computing power to eliminate the high computational cost, because the rewards of the bitcoin issue reward unit time will not be increased because of the increase in computing power costs. Constant, for example, about 12.5 bitcoins are used for mining rewards every 10 minutes. The higher the power, the lower the reward for unit computing power. The mining machine with high computational cost is facing shutdown. Eliminated out.

Summary: The growth of Bitcoin's total network computing power does not mean that the Bitcoin security model must be improved. The improvement of the security model mainly depends on the increase of attack cost, including hardware cost and computing cost. However, if the cost of attack continues to increase and there is constant computing power to join, it is really an improvement of the security model. At this time, even if people generally think that the market is rising, this period generally occurs in non-hardware iterations and cheap electricity. Water period. Also please treat it rationally!

Author 丨莱道君

Source 丨莱道 blockchain (laidaoblockchain)

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