The Economics of Bitcoin – How does Mining work
The recent halving has generated much debate about the economics of Bitcoin. In this discussion I’m joined by the CEO of Skyhook Capital Lawrence Grinceri, the CEO of Taal Mining, Jerry David Chan and Eli Afram. We look at the how Bitcoin BTC may evolve as the mining reward decreases and focus on the how the economics of BSV and its fee based strategy works.
Lawrence Grinceri the CEO of Skyhook Capital gives his perspective on how the over all digital asset space is evolving and we hear fro Jerry Chan and Eli Afram both staunch beleivers in the economics of BSV, about why they think BSV is so well positioned.
In our previous video on mining we looked at the BTC halving. This video looks at the economic model being used by Taal, a major miner of BSV.
The difference in very basic terms is that Taal and BSV supporters see the BSV network as a utility based network as opposed to the store of value narrative BTC proponents promote. BSV proponents argue BTC is doomed as the miners will stop mining it as it becomes uneconomical to do so. This will happen if the price fails to double by each halving event. The BSV camp don’t see a fee market with BTC that will make up for the loss in block rewards to compensate the miners.
Bitcoin mining may seem complicated but it isn’t to difficult to grasp and we hope this video help you understand the economic models a bit better. Feel free to email us firstname.lastname@example.org or put some comments below the video on anything your unclear on or want to see more in-depth discussion around.
Bitcoin Mining and the ranging debate
The BTC and BSV camps spend a lot of energy attacking each other and the validity of the protocols. This is misguided and a waste of time in my opinion. I personally think both will co-exist and be major networks in the coming years. They offer totally different things and the mudslinging actually damages both camps and how the wider business community perceives Bitcoin. That’s just my opinion and I hope a few of the maximalists might consider it sometimes. For the rest of you just looking to understand the space a bit better and maybe invest in it I hope this educational video helps.
Subscribe to our youtube channel for regular content