But does Bitcoin really have a floor related to the energy put into the mining? Since the energy cost is paid for by the miners, do other players in Bitcoin "respect" that floor? I don't see that - there's nothing keeping a Bitcoin from going all the way to zero - regardless of the energy consumed in it's production, and Krugman argues that gold (and the feds) have a bottom that is greater than zero.
My understanding could be wrong, as my understanding of Bitcoin would definitely be at the "noob" level :)
My understanding could be wrong, as my understanding of Bitcoin would definitely be at the "noob" level :)