What happens when you can pay for electricity in sats?

For what it’s worth, I neither run a bitcoin mining company nor an electric company nor an exchange, but let’s do some thinking.

How does new bitcoin enter the market? Mining. So I would assume that miners have purchase agreements with OTC desk and/or exchanges. This in-flow sets the fiat price.

Why would a miner sell bitcoin? To cover operational expenses aka OPEX. The most prevelant and obvious being electricity costs. I’m sure there are many other reasons but let’s assume electricity is the primary OPEX line item for a miner and the miner otherwise wants to hodl forever.

What happens when they can pay for electricity in sats? One of their fiat denominated line items becomes a sat denominated line item. The flow of bitcoin is now into power generator hands. (BTW, Synota is doing this)

Do power generators exchange these for fiat? Maybe. If a mining company makes up a large percentage of that generators revenue, then it’s likely that they will convert to fiat to cover their own fiat denominated OPEX line items.

But what if the miners are a small percentage of revenue? What if the power generator is orange pilled and they make enough fiat from other customers to cover expenses and can hodl their sats?

Now the flow of bitcoin into the market for sale has decreased. If demand remains constant or goes up and supply goes down…🤔

I’m sure the actual impact will vary but it’s an interesting thought nonetheless.

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