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Five Factors That Make Bitcoin Miners Unique – Bitcoin Magazine


This is an opinion piece by Jaran Mellerud, an analyst at Arcane Research who specializes in Bitcoin mining.

Most people don’t think of bitcoin miners as just another energy-intensive industry, but there is one big difference: bitcoin miners are particularly flexible about when and where they consume energy. Arcane Research’s new report titled “How Bitcoin Mining Can Transform the Energy Industry” found five factors that make Bitcoin miners unique energy consumers, which I will explain here.

Bitcoin miners are price-sensitive energy consumers

A price-sensitive energy consumer has a financial incentive to adjust its energy consumption according to the price of energy. Bitcoin miners refine energy into bitcoin and only have a financial incentive to do so if the price of energy consumed is lower than the price of bitcoin production.

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