“From this, he inferred a profound principle: that the whole of nature was greater than the sum of its parts, each component interacting with others in complex ways to sustain the balance and harmony of the whole.”

Originally published at https://www.aniccaresearch.tech on October 19, 2022.

 Saneel Sreeni

Background

Overview

Outline

The valuation of hashpower is one of the oldest and most arcane topics in the mining world. Several prior academic papers and industry research have explored the economic and game theoretic aspects of proof-of-work, but most of them oversimplify or make unrealistic assumptions about how the hashpower market works in practice.

In Part I of this series, we presented a simple heuristic for understanding hashpower as an asset class. In mining, everything is connected. To establish a comprehensive understanding of the market dynamic, we need to scrutinize the interactions between the underlying forces in greater depth.

Part 1.