Bitcoin Course | Big Picture Basics 4.4 - Commodity Hashpower Pt2

As we transition from the physical intricacies of the global network of mining hardware and the warmth they produce, we step into the limitless realm of cyberspace. This digital dimension houses a vast expanse of data, memories, videos, photos, and myriad digital transactions that move like whispers, effortlessly traversing the globe.

For Bitcoin, the journey began with a simple yet revolutionary premise: leveraging this vast domain to record and authenticate financial transactions.

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Financial Disclaimer:

This video is for educational and informational purposes only and should not be considered as financial advice or an investment recommendation.
The opinions expressed herein are solely those of the presenter and do not reflect the views of Hashpower Academy. Information is provided ‘as is’ and without warranties, either expressed or implied. We do not guarantee its accuracy or completeness. Investing in cryptocurrencies involves significant risk and should be undertaken only by individuals who can afford potential losses. Viewers are advised to conduct their own research and consult a qualified financial professional before making any investment decisions.

Video Transcript:

[Music] to understand a bit about the economics of hash power is that well every Miner is trying to produce as much hash power as they can with their computers and the cost of their electricity because if you’re producing 1% of the global Network hash power you’re going to approximately earn 1% of the global Network transaction fees and so the economics and the economic value behind hash power is that your individual contribution versus the network is also the amount of Bitcoin you’re going to earn and that economic stream of value of Bitcoin is what gives hash power its value so if bitcoin’s price is really high and there’s lots of transactions happening on the network hash power earns you more Bitcoin and so the machines are higher priced if there’s less transactions on the network and or there’s a really low price in Bitcoin hash power earns less and so what you find is that hash power as an asset Rises and Falls similar to bitcoin’s price there’s a few other aspects that we will discuss in further modules as to how these changes happen but that’s the understanding of the economics behind hash power is that it’s produced and purchased from the physical world of computers but it has an economic value to the digital world and an economic security to protecting the digital Ledger of of [Music] assets [Music]

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