Altcoins make the perfect testing beds right? Well...
What would happen if the difficulty increased the mining reward instead of decreasing them?
Say Difficulty 1 produces 1 coin.
Difficulty 2 produces 2 coins.
Difficulty 4 produces 4 coins...
etc etc...
I'm no economist, so I'd like to here what other people think.
The way I see it, we'd see difficulty grow massively, and when it looses its profitability 90%+ would stop mining it. It'd eventually fall to a very low difficulty. There is so many routes it could take after that. It could die off. It could slowly increase in profitability again due to demand and then everybody would jump on it again, and we could see huge spells of massive difficulty and minimal difficulty. I don't know.
