This week’s dramatic decrease in hashpower (close to -20%) has lead to something of a natural experiment occurring in the blockspace market: a bonafide negative supply shock. When hashpower decreases it takes miners longer to produce blocks so fewer are produced and less blockspace is available for transactions.
Share this post
Deriving a Bitcoin Blockspace Demand Curve
Share this post
This week’s dramatic decrease in hashpower (close to -20%) has lead to something of a natural experiment occurring in the blockspace market: a bonafide negative supply shock. When hashpower decreases it takes miners longer to produce blocks so fewer are produced and less blockspace is available for transactions.