18 lines
735 B
TeX
18 lines
735 B
TeX
\begin{frame}{Bitcoin Mining Market Structure}
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\begin{block}{Revenue}
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\begin{equation}
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R_{i,t}=\eta_{t}\cdot\frac{q_{i}}{Q^{-i}_{t}}
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\end{equation}
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\end{block}
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Where \(R_{i,t}\) is the revenue of miner \(i\in I\), at time t. \(q_{i}\) is the hash power of a miner i, and \(Q^{-i}_{t}\) is the hash of all other miners. The miner reward is \(\eta\)
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\begin{block}{Revenue change from t to t+1}
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\begin{align*}
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% R_{i,t+1}-R_{i,t}=\eta \cdot\frac{q_{i}}{Q^{-i}_{t+1}-Q^{-i}_{t}}
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% \\
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\%\Delta R=\%\Delta P_{btc}(1-\epsilon)
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\end{align*}
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\end{block}
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If the bitcoin price elasticity of hash \(\epsilon\) is elastic, than a decrease in price will \textbf{\emph{increase}} revenue, for low marginal cost producers.
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\end{frame}
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