> The energy consumed on mining represents a an input cost based on an expected return on investment, like energy spent on car manufacturing, for example. if the return falls, so will input costs because no one operates at a loss for long.
A significant number of operators in places like China are stealing electricity, either by tapping into wires or by making deals with corrupt local officials for reduced/free electricity. Articles such as these occur quite regularly.
A significant number of operators in places like China are stealing electricity, either by tapping into wires or by making deals with corrupt local officials for reduced/free electricity. Articles such as these occur quite regularly.
http://www.scmp.com/news/china/society/article/2143758/chine...
https://www.ccn.com/chinese-police-seize-600-bitcoin-mining-...
http://www.scmp.com/news/china/society/article/2108486/four-...
https://kyc360.com/article/bitcoin-causes-electricity-crisis...
As such, there really isn't a "price floor" to crypto mining. Stolen electricity is free, they will keep mining no matter what.