saeta.eth

economic security flippening ⬛⬛⬛⬛⬛⬛⬛ 700% Ethereum • 29.9M ETH staked • $2,525 per ETH → $75B of economic security Bitcoin • 600M TH of hashrate* • $17.5 per TH** → $10.5B of economic security *Expressing hashrate in TH is a common abuse of notation—the correct unit is TH/s. **Bitmain sold the S21 in bulk at $14 per TH/s. The energy efficiency of the air-cooled S21 is 17.5J per TH. With a setup cost of $200K per MW of air-cooled datacenter there's an additional datacenter setup cost of $3.5 per TH/s, for a total cost of $17.5 per TH/s. $17.5 per TH/s should be a conservative upper bound. The S21 can be overclocked to reduce the dominant nominal rig cost of $14 per TH/s. Should Bitmain itself deploy the hashrate the sticker price can be discounted by Bitmain's profit margin. Manufacturing billions of dollars of S21s will lead to economies of scale and better pricing from suppliers like TSMC as well as assemblers. Manufacturing and installing state-of-the-art S21s is one of many strategies to deploy hashrate. For example, old hardware acquired at a significant discount can cover some of the hashrate, especially post-halving. Datacenter costs can be partially recouped by reselling capacity at discount pricing, e.g. at $100K per MW to AI farms. Rig costs can also be partially recouped by reselling PSUs and scrap metal.