Interesting approach. Most mining NPV analyses just assume constant block-finding and call it a day. Using Bellman equations feels like overkill for the basic case — as the author admits, the answer isn't that different — but the real payoff is downstream: selfish mining game theory, variable energy costs, difficulty adjustments. That's where the simple model breaks down and you actually need this framework.
The numerical example is eye-opening too. A 4% margin (521 vs 500 sats/EH) turning into ~$2B present value shows how much scale amplifies thin edges in mining.
Interesting approach. Most mining NPV analyses just assume constant block-finding and call it a day. Using Bellman equations feels like overkill for the basic case — as the author admits, the answer isn't that different — but the real payoff is downstream: selfish mining game theory, variable energy costs, difficulty adjustments. That's where the simple model breaks down and you actually need this framework.
The numerical example is eye-opening too. A 4% margin (521 vs 500 sats/EH) turning into ~$2B present value shows how much scale amplifies thin edges in mining.