Power Efficiency Theory Rant: Designing a Realistic Equation

Power Efficiency Theory could also be used to measure the “physical intrinsic value” of products across different markets.

When a well-off individual says something like a market asset would “fall to its utility value”, they are implying that the asset has been miscalculated due to superficial or artificial or non-physical factors that sometimes enter the market.

So I suppose I should also cite Einstein because what we’re actually measuring is the energy of the product that somebody wants to sell.  Energy is equal to mass multiplied by the speed of light. It’s a constant. 

Similarly (and more specifically) The Power efficiency of the product that you’re selling should also equal some sort of equivalent to the mass and/or the speed of that product along with its physical progression, stagnation, or decline. 

Putting a valuation point on a system at its physically intrinsic value could be a foundational constant in valuing new and emerging technological systems at the very least. 

So, at this point, we have the chart here but the equation is missing one crucial point – it’s (supposed to be) a conservative chart in that we must also assume the lowest point within the 4 year lag of the price prediction… so perhaps we can represent that and express it properly within the equation. 

Because we’re trying to somehow account for uneventful events in the future that we can’t actually account for, like a recession or natural disaster, if that makes sense. 

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4 responses to “Power Efficiency Theory Rant: Designing a Realistic Equation”

  1. […] a Power Efficiency Theory perspective, this potentially increases the utility generated from the underlying electrical and […]

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  2. […] Power Efficiency Theory (PET) argues that the value of a physical or computational system should be influenced by two things improving at the same time: its performance increases and its energy cost per unit of output declines. […]

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  3. […] the PEI applies the network’s compounded power-efficiency progression to estimate how its “digital-physical” value has changed over […]

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  4. […] Power Efficiency Index (PEI) is a mathematical valuation model within Power Efficiency Theory that compares changes in computational performance and energy efficiency with the market price of a […]

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