  What happens to mining when the Bitcoin price changes, when there are mining
supply shocks, the price of energy changes, or hardware technology evolves? We
give precise answers based on the technical forces and incentives in the
system. We then build on these dynamics to consider value: what is the cost and
purpose of mining, and is it worth it? Does it use too much energy, is it bad
for the environment? Finally we extend our analysis to the long term: is mining
economically feasible forever? What will the global hash rate be in 40 years?
How is mining impacted by the limits of computation and energy? Is it
physically sustainable in the long run? From first principles, we derive a
fundamental scale-invariant feasibility constraint, which enables us to analyze
the interlocking dynamics, find key invariants, and answer these questions
mathematically.
