If the crypto doesn't reward high in the beginning, not many people will mine it. So to gain as many miners as possible, they keep high rewards in the beginning.
A better solution would be, to increase the reward as more and more people join in. So, people would ask their friends to join in and so on,.
Topic: Decreasing rewards (Read 3894 times)
But maybe such concept was beyond the brilliant mind of Satoshi.
Or maybe you're just butthurt you didn't start mining in 2011.
Which do you think is most likely?
http://www.theguardian.com/technology/2013/nov/27/hard-drive-bitcoin-landfill-site
Clearly you never got what Bitcoin is about, and apparently you still don't.
legendary
Activity: 1862
Merit: 1011
Reverse engineer from time to time
But maybe such concept was beyond the brilliant mind of Satoshi.
Or maybe you're just butthurt you didn't start mining in 2011.
Which do you think is most likely?
Either the price of bitcoin has to go up a bunch, or miners have to shut down because they can no longer pay their electric bills on a 1 coin/block. Then since they shut down their miners, the network shrinks and because unsecure and open to attack by anyone who decides to flip on their asic farm that they had previously shut down.
The difficulty of mining should adjust more smoothly than that. I doubt we'll see a sudden drop in difficulty due to a lot of miners giving up. New miners will stop joining the system because it won't be profitable enough to invest in new hardware. Old miners will tend to keep going, because they've already paid for their hardware. The ones who give up, because they can't even afford their electricity bills, will be the ones who have the least efficient hardware, so they will tend to be the ones who were making least contribution to the network, so their quitting won't have much impact. And of course, as each one quits, the remainder become more profitable.Also, as transaction volume increases, the transaction fees per block will increase. This is for two reasons. First, there will be more transactions in each block. Second, there will be more users competing for the space in each block, so there will be more incentive for users to offer higher fees so their own transactions get processed quicker. So as long as Bitcoin is successful, there should be enough reward for mining to keep enough miners at it to discourage 51% attacks.
(Personally, I think governments and large companies will eventually start mining themselves, not for block rewards but as a kind of public good. America will want to be sure Russia can't mount a 51% attack. Microsoft will want to be sure Google can't mount one. One day, they will all be dependant on Bitcoin remaining healthy.)
The very first users, when trying Bitcoin for the first time, were not aware that it was going to become what it is today - they put in time, effort and risk when no one else would.
What was the risk associated with mining the first blocks? A couple of minutes of personal time wasted, a couple of minutes of wear and tear on CPU, a dollar spent on electricity?
Man, that is a huge risk. I'm glad it paid off.
a burned out CPU/bus??
The volatility of bitcoin is nice for speculators, but not so fun for commerce since you can't hedge the currency risk of BTC/USD when you sell stuff for BTC.
The more intelligent humans accepting Bitcoin for purchases use a payment processor to instantly convert all Bitcoins they do not want to save into Fiat Currency at the time of sale/payment, which completely removes the concern you mentioned.
volatility is the mt.gox bot.
on others places, btc is very stable less than 50 euros in 1 month.
on others places, btc is very stable less than 50 euros in 1 month.
btc-e has more bots running than gox
volatility is the mt.gox bot.
on others places, btc is very stable less than 50 euros in 1 month.
on others places, btc is very stable less than 50 euros in 1 month.
The lack of price stability in bitcoin is unacceptable since the BTC price goes up and down several % every day, and some days even drop with 50% or double in price.
What's unacceptable to you is obviously acceptable to a growing number of people on the planet.
"What's unacceptable to you is obviously acceptable to a growing number of people on the planet."
The lack of price stability in bitcoin is unacceptable since the BTC price goes up and down several % every day, and some days even drop with 50% or double in price.
What's unacceptable to you is obviously acceptable to a growing number of people on the planet.
"What's unacceptable to you is obviously acceptable to a growing number of people on the planet."
The optimal crypto currency should have a built in algorithm for price stability, just like central banks try to target 1-2% inflation.
It can be done by letting an algorithm base the reward on:
*number of transactions per day
*number of addresses
*number of miners
*price of XYZ_Coin vs XAU...
It can be done by letting an algorithm base the reward on:
*number of transactions per day
*number of addresses
*number of miners
*price of XYZ_Coin vs XAU...
Yeah, good luck with designing that algorithm ...
True, if you define stable to mean losing 95% of its value in a human lifetime (my grandmother live to be about 100). Ditto for the Canadian dollar etc. Or half it's value in 20-25 years.
Someone had to say it
With price stability I refer to the price today compared to one year ago, not 100 years ago.
To save all your fiat-money in 100 years is foolish, money is meant to be spent or invested in something with long term value or an asset which pays dividend, for example bonds, gold, stocks or real estate.
The lack of price stability in bitcoin is unacceptable since the BTC price goes up and down several % every day, and some days even drop with 50% or double in price.
What's unacceptable to you is obviously acceptable to a growing number of people on the planet.
The optimal crypto currency should have a built in algorithm for price stability, just like central banks try to target 1-2% inflation.
It can be done by letting an algorithm base the reward on:
*number of transactions per day
*number of addresses
*number of miners
*price of XYZ_Coin vs XAU...
It can be done by letting an algorithm base the reward on:
*number of transactions per day
*number of addresses
*number of miners
*price of XYZ_Coin vs XAU...
Yeah, good luck with designing that algorithm ...
True, if you define stable to mean losing 95% of its value in a human lifetime (my grandmother live to be about 100). Ditto for the Canadian dollar etc. Or half it's value in 20-25 years.
Someone had to say it
With price stability I refer to the price today compared to one year ago, not 100 years ago.
To save all your fiat-money in 100 years is foolish, money is meant to be spent or invested in something with long term value or an asset which pays dividend, for example bonds, gold, stocks or real estate.
The lack of price stability in bitcoin is unacceptable since the BTC price goes up and down several % every day, and some days even drop with 50% or double in price.
Without decreasing rewards bitcoin wouldn't be deflationary; we would all be a lot poorer. Decreasing rewards boost the price, and in turn increase rewards relative to fiat currencies.
Bitcoin isn't deflationary, it's inflationary because new coins are always being generated by PoW. Please stop spreading that meme.
Here is a quote from wikipedia "deflation increases the real value of money"
http://en.wikipedia.org/wiki/Deflation
Time and time again we see Bitcoiners talking about economics like they are qualified and have a degree.
Perhaps an example will help you understand:
In Janurary 2013 a loaf of bread cost 1 USD
100 USD would buy you 100 loaves of bread
1 Bitcoin would buy you 13 loaves of bread
In Janurary 2014 a loaf of bread now costs 2 USD
100 USD will buy you 50 loaves of bread (you get less for your money - inflation)
1 Bitcoin will buy you 500 loaves of bread (you get more for you Bitcoin - deflation)
Hope this helps.
Minors will always collect transaction fees. In the future, the transaction fees will become a bigger part of the block reward.
Yes but the transaction fees will be no where near enough to make up for the difference in the lower block reward. THUS, it works like a ponzi. Either the price of bitcoin has to go up a bunch, or miners have to shut down because they can no longer pay their electric bills on a 1 coin/block. Then since they shut down their miners, the network shrinks and because unsecure and open to attack by anyone who decides to flip on their asic farm that they had previously shut down.
There is no rule, law or right that miners have to get money only because the fact they are mining. So the price of Bitcoin doesn't have to go up. That's ridiculous. The number of miners will always be a balance between the money that can be made by mining and the costs of equipment, electricity, space, and expertise.
I don't think he thought through his argument ... at all
Minors will always collect transaction fees. In the future, the transaction fees will become a bigger part of the block reward.
Yes but the transaction fees will be no where near enough to make up for the difference in the lower block reward. THUS, it works like a ponzi. Either the price of bitcoin has to go up a bunch, or miners have to shut down because they can no longer pay their electric bills on a 1 coin/block. Then since they shut down their miners, the network shrinks and because unsecure and open to attack by anyone who decides to flip on their asic farm that they had previously shut down.
There is no rule, law or right that miners have to get money only because the fact they are mining. So the price of Bitcoin doesn't have to go up. That's ridiculous. The number of miners will always be a balance between the money that can be made by mining and the costs of equipment, electricity, space, and expertise.
So, we figured out that life is not fair and those who risk first and most usually reap greater rewards.
It must suck to feel like a spoiled entitled victim (child) all the time.
How do those people even function in society?
It must suck to feel like a spoiled entitled victim (child) all the time.
How do those people even function in society?
Minors will always collect transaction fees. In the future, the transaction fees will become a bigger part of the block reward.
Yes but the transaction fees will be no where near enough to make up for the difference in the lower block reward.
How do you know how many fee including transactions will be included in blocks found years from now?
Nobody knows how much transactions fees will generate in 5 years time. One of the many mysteries of bitcoin that only time can unravel.
Minors will always collect transaction fees. In the future, the transaction fees will become a bigger part of the block reward.
Yes but the transaction fees will be no where near enough to make up for the difference in the lower block reward.
How do you know how many fee including transactions will be included in blocks found years from now?
Minors will always collect transaction fees. In the future, the transaction fees will become a bigger part of the block reward.
Yes but the transaction fees will be no where near enough to make up for the difference in the lower block reward. THUS, it works like a ponzi. Either the price of bitcoin has to go up a bunch, or miners have to shut down because they can no longer pay their electric bills on a 1 coin/block. Then since they shut down their miners, the network shrinks and because unsecure and open to attack by anyone who decides to flip on their asic farm that they had previously shut down.
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