The Bitcoin Infinity Show The Economics of Bitcoin Mining with Bob Burnett - Bitcoin Infinity Show #139
7 snips
Dec 22, 2024 
Bob Burnett, CEO of Barefoot Mining and a devoted Bitcoin advocate, dives deep into Bitcoin mining's economics. He tackles the flawed FPPS payout model and explores the notion of Bitcoin block space as a commodity. The conversation sheds light on the challenges of state control over mining and emphasizes the importance of decentralization. Bob introduces the innovative Ocean mining pool, sharing its philosophy and successful launch. The talk also touches on sustainable energy in mining and the future marketplace for Bitcoin block space.
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Bitcoin Base Layer Scarcity
- Bitcoin's base layer is incredibly scarce, supporting only 200 million transactions annually.
- This scarcity makes direct base layer usage a luxury, unsuitable for everyday transactions for everyone.
Bitcoin Accessibility
- Bitcoin isn't for everyone, but it is for anybody.
- Not everyone will hold their own keys due to the limited base layer capacity, contrary to some Bitcoin philosophies.
Block Reward Subsidy
- The block reward subsidizes both miners and users, providing initial free access to the base layer.
- As the subsidy diminishes, base layer users must prepare to pay fees, potentially causing contention.
