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1034 sats \ 3 replies \ @Bell_curve 16 Mar \ parent \ on: Bitcoin is completely changing how people remit money. (And that's a good thing) bitcoin
Economic theory says that collusion or cartels are temporary because one member will cheat
And this is what usually happens. However, OPEC has been around for a pretty long time now. I'm sure some cheating goes on, but it hasn't been enough to dissolve the cartel.
With respect to bitcoin miners, it's so decentralized and relatively easy to enter that I don't see cartels being feasible.
If anything, I'd expect to see many operating at a net loss much of the time.
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OPEC today has more members yet is less powerful than in 1973 or 1979.
A big reason is greater oil production in non OPEC countries such as USA.
China tried to ban bitcoin mining ⛏️ in 2021 but miners relocated elsewhere.
A similar attempt to ban mining in USA with a 30 percent energy tax proposal.
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The US ramping up production is the other reason cartels tend to fail: an inability to prevent outside competition.
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