Adam Back: BIP-110 Mining Loses About $200,000 Per Block
Adam Back stated that as miners grow weary of losing about $200,000 per block, hash power will decline. Even with a price, the first batch of mature coins will take about a month to trade, thus requiring a burn of about $20 million to make the first mined coins tradable.
High opportunity costs have led to a continuous loss of hash power from a few chains, benefiting the main chain miners and the economic majority, while the funding and hash power of fork supporters are under pressure.
Source: Public Information
ABAB AI Insight
As the inventor of Hashcash and CEO of Blockstream, Adam Back continues to emphasize that a few chains are unsustainable due to a lack of economic incentives, previously pointing out that the lack of broad consensus on BIP-110 will lead to high-cost ineffective forks.
On the capital path, mainstream miner resources continue to concentrate on the main chain to maximize income, motivated by the desire to avoid opportunity cost losses, shifting resources from signaling support to actual profitable block production.
Similar cases can be seen with the rapid marginalization of low hash power forks like Bitcoin Gold in 2017, and the failure of SegWit2x due to insufficient economic weight; currently, the hash power of a few chains is naturally declining after forced signaling.
This essentially belongs to capital concentration: high-cost mining accelerates the return of resources to the main chain, with the mechanism being that miners rationally choose to maximize unit hash power returns rather than adhere to rules without liquidity support.
ABAB News · Law of Cognition
Every block loss will eventually dissipate hash power
Coins without liquidity cannot redeem mining costs
Economic weight determines the life and death of chains