100TH per kW is Insane! | Bitcoin Mining Education

Video Transcript:

hello there and welcome to the hash power Academy today’s topic is a mining 101 um understanding of efficiency so I have three different types of microchip efficiency so you can think of it as the s9s of last year’s cycle uh the s21s sort of thing is this cycle and the new ones that are going to come out soon um at 10 jewles per terahash so that’s the amount of electrical cost versus hash rate output and this hash rate performance is what’s paying you Bitcoin so if you’ve got three different machines that use one or twice as much or three times as much um energy cost to produce the same hash rate output well this one’s going to have an energy bill that’s half for this machine and this one’s going to have the energy bill of these two machines combined so the reason why efficiency is so important is because your physical computer is not gaining any Jewels per terahash efficiency unless you’ve modified the software a little bit but you’re still physically constrained as a network the the Bitcoin Network as a whole the difficulty adjustment is going up but behind that in the veil behind difficulty efficiency is going down the Jews per terahash is going down but the more interesting interesting way to understand these efficiency conversions which could also be considered the fleet efficiency if you look at the public mining stocks is to actually flip it the other way around think energy is charged and rated based on kilowatt hours or megawatt hours for this we’ll use kilowatt hours so 1,000 Watts th000 oh missed a zero 1,000 Watts bad handwriting uh this machine that uses 10 jewles to produce a terahash of compute well th000 divided by 10 that is this machine is going to be producing 100 terahash per kilowatt you see how it’s the other way around because we’ve divided the conversion rate of efficiency by 1,000 which is the rate of energy cost 20 jewles per terahash over a th000 that’s 50 terahash per kilowatt and this one 30 3.3 ter per kilowatt and that is probably a more clearer way to understand that the same one kilowatt hour of energy cost to you through three different machines the least efficient machines producing the least amount of hash rate per per kilowatt the mid gen machine 50 trash per kilowatt and the latest gen is making now double 100 terahash per kilowatt which if you think back in history to all the different older versions of machines this is an insane metric but it’s more understandable to see okay the amount of hash rate per kilowatt is going up as the jewels per terahash efficiency is going down and that driving down of uh efficiency uh in jws per terahash that is of fundamental importance because what it’s doing is the microchip Innovation Vector compute is one branch of the network and the production of energy and all our different energy sources and nuclear fishing and nuclear fusion even that’s another vector and microchip technology is one branch and energy technology is another they build this playing field of abundance that many bit coiners like to talk about but the the microchip technology use case of energy and the actual velocity and volume of energy as that second Vector those are the axes in which Bitcoin comes off as that third axis in terms of Dimensions shall we say but yeah I hope this was a different sort of insight as to looking at the efficiency or Fleet efficiency of Bitcoin Miners and as I said if you flip it the other way around you’ll understand how much hash rate per kilowatt that different efficiency levels are are earning cuz what you can do is you can now multiply that by the amount of Bitcoin per terahash per day and divide it by 24 and you get the Bitcoin per kilowatt hour and that would be a direct comparison between your electricity bill per kilowatt in dollars and the amount of Bitcoin that you earn per per kilowatt which you can also dollarize you can remove the dollar from both and just have an exchange rate of uh electricity to bitcoin quantity but that is Bitcoin unit of account economics for another topic I hope this was interesting I hope you enjoyed like subscribe share