This is the second part of the Short STOry Academy lecture on the economics of Bitcoin mining, including the analysis of what will be happening to miner profits and the hash rate.

The session starts with a brief review of Session 1 (blog) and then looks how the formalisms developed there can be applied. Questions addressed include

  • What happens in case of a price or a demand shock? And how do prices / quantities react less than one would expect?
  • What are the economic implications of certains shapes of cost curves?
  • What real-world situation gives rise to which cost curves, and how do those systems behave?
  • How does the Bitcoin costcurve look like?
  • How does the hash rate react to changes in the bitcoin price and to halvening?



  1. Review of Session 1 1:52
  2. Analysing traditional microeconomics supply / demand charts 5:37
  3. Analysing cost curves 9:49
  4. Analysing Bitcoin mining cost/reward charts, including The Halvening 16:57