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Topic: John Nash created bitcoin - page 5. (Read 22254 times)

sr. member
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April 17, 2017, 06:22:58 AM
To make game theory with this, need to more present it this way :

Option A : his wife has 20% of dieing, but 70% chance of winning 1 million
Option B : his wife has 60% of dieing, but 80% chance of winning 10 million
Option C : his wife has 3% of dieing, but 95% chance of winning 10 000

And the nash equilibirum say the most likely option is C, because in the end, most people will choose the solution with the lowest risk, rather than high risk for high reward.

Once again, that is not game theory, but is no-brainer theory.

Might as well add few more options...

Option D: his wife has 1% of dieing, but 99% chance of winning 10 00
Option E: his wife has 0.01% of dieing, but 99.99% chance of winning 100

Everyone will go all-in on option E.

It's a no-brainer.
legendary
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what is this "brake pedal" you speak of?
April 17, 2017, 05:52:29 AM

You say you won't give your private keys, but the government can throw you in jail and torture you. Also I expect by 2024 or so, the elite will have control over the mining and can blacklist addresses they want to.

ok so my underpowered brain gets maybe 0.05% of this.

but why would some addresses be blacklisted? by the government? what propose would it serve? to move btc holdings to altcoins?
newbie
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April 17, 2017, 04:56:47 AM
if a whiz in math, whether he's good about the other two?
full member
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They're tactical
April 17, 2017, 04:41:25 AM
With game theory it's not mainly about rationality, but how likely someone who want to get some reward from the game would act given this or that informations.

It works mostly for economic scenario, when there are interest engaged , and the only given is that the person want to make profits or "win the game" when all other actors are also willing to do the same.

It's a model to tell how likely a person is going to make this or that decision given this or that infos, and how the reward balance out the risk to decide on a strategy.

The higher the stake, the better it works, because it's very un likely someone would engage big stake without at least thinking twice to the potential benefits/loss.

Game theory are all about reaction to risk and unknown, it's not that much about rationality, but how a person can percieve his own interest, and the higher the stake, the better game theory will apply.

You can't exclude rationality from game theory analysis.

A person is expected to be perfectly rational in game theory but that's never the case in real life.

A lot of information can be given (and available) to a person but it is not necessary that he will always choose the most objective one.

In most cases he will choose the one that is most gratifying to his sensual satisfaction and desire, never mind if his decision will screw him up hard later.

Additionally, a person make decision not on the potential risk/reward because that would involve too much thinking for him, but on the most immediate risk/reward that he can receive within a short period of time, never mind if a delayed risk/reward will be much better unless he is 100% assured of it.

In terms of getting 100% assurance, nobody in real life really has it.

Everyone will have to make a decision based on lack of information.

Game theory is just too simplistic, and it works only in simplistic situations.

We can make as many fanciful equations to be associated with it but its just to make it appear fanciful as if it is relevant, because if equations are really relevant then we are just not including enough factors into the equations, and the factors involved are far more than we may realize we know.

Thus if we are not including enough factors into the equation to make the right analysis, can we claim that game theory analysis is valid?

It's like trying to compute what is e using the formula of mc instead of mc^2.


Let's say you're in a "massive stake" situation.
You are given 2 options to choose from:
Option A: Be given $1 trillion dollar worth of assets of your own choosing (in cash, or in gold, or in bitcoin, or in stocks, or in bonds, or in real estate, or a mixture of any of them) right away.
Option B: Your wife is killed right away.
Dilemma: If you choose one of them, the other one will be lost, i.e. if you choose Option B, you will lose Option A, and vice versa.
Which option will you choose?
Game theory does not factor in how materialistic you are, does not factor in how affectionate you are to your wife, does not factor in how merciful you are, does not factor in your current economic situation, etc etc etc.
But if game theory was to factor in all these factors of influence, the game theory would be much more complicated than it now is.
Most probably even you would not be interested to dabble in it by then.

Edit:
Sorry for any confusion. The options are supposed to say if you choose option A (i.e. be filthy rich), you will lose your wife. And if you choose option B (i.e. spare your wife), you will lose $1 trillion worth of wealth.

To make game theory with this, need to more present it this way :

Option A : his wife has 20% of dieing, but 70% chance of winning 1 million
Option B : his wife has 60% of dieing, but 80% chance of winning 10 million
Option C : his wife has 3% of dieing, but 95% chance of winning 10 000

And the nash equilibirum say the most likely option is C, because in the end, most people will choose the solution with the lowest risk, rather than high risk for high reward.

It's like this consensus is reached on the parameters that can increase risk for the two party, even if other choice can potentially lead to more reward with more risk. Miner are exposed constantly to this dilema Smiley

And the more the rule give at least some reward with low risk, the more it is likely to be followed by the two party, because it lower the overall risk, and it's where equilibrium is reached.


But in football, it's not the arbiter who is the highly paid, because their role is still deterministic, and if all the match would be decided between artbiters it would not attract high stake.

It's in these conditions when there are part that are known, and part that are only statistically known, that game theory can give idea of how certain probabilistic factors will impact the likelyness of a decision or another. And it will always adjust on the known, because on the overall player who take in account the more information wins, and as game theory is still about winners, it's all about how likely a person is supposed to decide to win, and it says that it's always with the lowest risk approach that you win on the long term, and so sticking to known even if the potential reward is not the highest.


full member
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They're tactical
April 17, 2017, 03:48:58 AM
And all together your comment also show that you dont see my perpective, and why the thing you point doesnt matter, and what I meant with checkpoint is that you would only need real pow consencus on this checkpoint to "harden" The chain if you want to enforce a particular order on the tx/block, but that would just be about one packet saying this block height is this block hash, and having a pow once in a while on this checkpoint instead of every block.

I invented that already in collaboration with @jl777 for Komodo in 2016. It is named dPoW (delayed proof-of-work).

CounterParty does something somewhat analogous as well.

And really it isn't a secure and sound solution, but more of a gimick. Because the local consensus still have to decide what to submit for checkpoints because the PoW system isn't validating every thing and can't resolve conflicting double-spending orderings that occurred between checkpoints.

I don't think you understand my discussion with dinofelis.

My main point is more to show that the whole pow scheme make more sense if you take it from the perspective of trading / speculation side, than as a decentralized currency / public ledger.

But in the same time, there are many point of bitcoin that are clumpsy.

Even if dinofelis i think make the same mistake many person do, and i was doing this mistake before too, is too estimate one functionality of bitcoin to make it fit to usual engineering criteria of efficiency for a particular purpose, but without seeing the real purpose of it, and why some aspect my look clumpsy because they are on the low end of the trade off in favor of something else.

And the thing it seem to does well is attracting high speculative value, and high stake of game theory on the pow side. As decentralized currency it has many flaw, especially currently, and is not either extremely efficient as a distributed public ledger.

Only looking at the code it's clear it's very messy.

Actually before i came to forum i already studied in depth code source from 3 core, bitcoin, bitmonero and blackcoin, from where i decided to rewrite my own client from scratch because the code is too messy.

Coming here i though there would be people who really understand the code and the theory and choice behind, but in reality i don't think anyone on this board as a real clue.

Only the fact that nobody can really understand it, or easily extend on it, not even talking about the protocol, but about all the various bugs and clumpsyness, either it's in the wallet, database indexing/managment, threading, and many bugs, or things that could be improved as long as all the mythical wish of the creator with a gran plan for the world is put aside Cheesy

On the overall i don' think anyone will disagree that the code is poorly designed, regarding all the OO, all the way the thing is made, it's very monolithic, against all good practice you would find in programming school book, and very hard to extend or encapsulate, and the rpc interface can only do that much, and is not that easy to really use from the perspective of making more complex web app/Dapp.

But in the same time, once you integrate all the game theory and math model for speculation and all this, it's easier to see where the code make more sense, and which base variable are actually more carefully designed in their definition and access, and where the care is put on, and it's not especially on the efficiency as a distributed ledger to solve double spend, or having easily distributed application wallet/shops/explorer "out of the box".

That's mainly my point here.

But maybe if i keep focused on this goal, i'm sure i can put up a testnet with experimental blockchain like without pow and reward, based on XThin block / bloom filter kind of things, and blockchain reordering , like in the idea the DAG thing, but without DAG, but real time re computation of block header chain when new valid tx are received, and still consensus on the same one chain, without needing pow or reward to validate blocks, with the idea i explained in the discussion with dinofelis Smiley

And in this idea, the checkpoint is mostly optional, but just to sort out the few % of error margin and to solve quicker some consencus problem on the long term.

I'm pretty sure with the script engine stuff like this will be made easily Cheesy


( and please don't cherry pick one sentence out of context and copy paste it in 3 threads to show how smart you are, it's not very nice Wink )


sr. member
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April 17, 2017, 12:18:52 AM
you speak all the same talking points...

dorky = dinofelis = trainscarwreak = iamnotback

common theme on all of you : bitcoin will fail or not scale

No. You are fucking dead WRONG!

It's supposed to be...

jonald_fyookball = dorky
legendary
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April 16, 2017, 10:47:37 PM
you speak all the same talking points...

dorky = dinofelis = trainscarwreak = iamnotback

common theme on all of you : bitcoin will fail or not scale
sr. member
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April 16, 2017, 10:06:11 PM
Well in that case I will be able to cash out. Anyone with at least 2 BTC will be able to make that one-time-only transaction and cash out. I was just worried that I couldn't even make that one-time-only transaction to send the coins into an exchange and dump for dollars. Being a dollar millionaire sure beats not being able to do anything with your BTC because the fees are insanely high. There's just no point in having money in an unregulated blockchain when you can't do nothing with it.

Also, can't whales find cheaper ways to move their billions? I think if I was a billionaire, I would still be a bit pissed off at having to pay $600,000 for a transaction.
They will have 0 alternatives even in 2030?

Contrary to what someone said that we will be paying exorbitant transaction fee, I have already invalidated such thesis.

No, in my most sincere opinion and intelligence, there will NOT be any high fee for us to pay. The fee we pay will commensurate with the price of bitcoin.
And if we will pay $600,000 fee, that will probably because each bitcoin will be worth $600,000,000, but we probably won't be seeing bitcoin price exceeding $1 million in our lifetime because bitcoin has a short lifespan.
Thus, don't worry about the fee.
The fee is insignificant.
legendary
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April 16, 2017, 04:42:56 PM
I was just wondering: Lets say we hit 2030 and price is around that $500,000 prediction. Fees insanely high at $600,000. Only dollar billionaires (or trillionaires at that point) are using the bitcoin blockchain anymore.
In this scenario, who would be the bitcoin developers?

I imagine that whoever is still developing bitcoin publicly will be extremely hated by the rest of 99.999999% of population that cannot afford 6 figure fees and got left behind with was once was supposed to be "internet money for the people". These guys sure don't look like illuminati trilionaires:



Will any of the current developers still be around? I wouldn't be able to defend with a straight face a coin that is only used by some insanely rich weirdos. I guess they will continue developing it anonymously?
Well I imagine by 2030, or near 2030, at this rate maybe not version 1.0 but BTC will be near "completion", definitely no more exciting features to be added, but all software needs a certain maintenance.

So let me get this straight.

Even people holding millions of dollars worth of bitcoin, will see their bitcoins trapped because transaction fees will be worth millions of dollars? What fees are we talking about by 2030? (at supposedly around $500k price)

Well we can estimate given that BTC trades 1/100th of its market cap daily. So @ $500k per BTC thus a $10 trillion market cap, thus $100 billion transacted daily. Given 144 blocks per day, that is $600 million per block.

Let's assume that whales will put complex settlement transactions on the blockchain with many inputs and outputs so perhaps only 100 transactions per block. Presuming that whales are willing to pay 0.1% fee for security (i.e. $600,000 per block), that means a minimum transaction fee of $6000. If whales are willing to pay more for security, say 1%, then minimum transaction fee of $60,000.

However, I think whales will end up demanding a kickback from miners for their transaction fees, so that miners can jack up fees on non-whales. Whales can make this demand because they can refuse to send their transactions to miners which won't deal. Yet non-whales can't make a credible threat, because miners who generally offered lower fees would end up losing hashrate relative to those miners who didn't defect from the fee market. Thus I think you will probably see miners colluding to extract the maximum fees that gouge non-whales.

So perhaps 10% fees so $600,000 per transaction. You'll pay it because you have no choice, whereas the whales will have exempted themselves from the fee. So in other words, we will be paying the fees for the whales, eventually the millionaires paying exorbitant fees in order to transact unregulated.

You'll of course be able to avoid that exorbitant fees by going through a regulated option as I explained previously.

So the bottom line is the whales will be free from regulation and we will not. We remain slaves.



Well in that case I will be able to cash out. Anyone with at least 2 BTC will be able to make that one-time-only transaction and cash out. I was just worried that I couldn't even make that one-time-only transaction to send the coins into an exchange and dump for dollars. Being a dollar millionaire sure beats not being able to do anything with your BTC because the fees are insanely high. There's just no point in having money in an unregulated blockchain when you can't do nothing with it.

Also, can't whales find cheaper ways to move their billions? I think if I was a billionaire, I would still be a bit pissed off at having to pay $600,000 for a transaction.
They will have 0 alternatives even in 2030?

sr. member
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April 16, 2017, 02:48:06 PM
It could actually be something like this.nash described the ideal currency concept as a standard function.I have come across this article on the internet before, perhaps as if you were searching for it on the internet.

sr. member
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April 16, 2017, 02:23:22 PM
In other words, the main difference in opinion between @iamnotback and me is that I think that bitcoin was simply badly designed, and that all the bad things we see are simply due to "stupidity" (everything is relative).  @iamnotback thinks that instead of stupidity, it is evil genius.

@dinofelis, the guy who argued in an Altcoin Discussion thread (about Dash) that there is no such thing as a 'scam', because everything is a free market (even fraud).

And now he changes his philosophy and duplicitously decides that the criteria for "desired design properties" is not determined by the goals of the designer even if the design matches perfectly to a diabolical plan.

@dinofelis everything you've written is incorrect. And I think it is pointless to refute you again, because you refuse to acknowledge that which was already written.

You repeat the same incorrect technological errors over and over again. And thus you continue to willfully lie.

Lol, you don't even understand that PoS and Byzantine agreement fundamental distill down to a generative essence of stake based voting, no matter how you try to obfuscate that fact from your blind eyes.

I would never hire you for any job related to computer science. You are incompetent.
sr. member
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April 16, 2017, 01:15:22 PM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.

Really 500,000$ is almost next to impossible for the bitcoin to attain such a price, not even in decade. We are only 1200$ dollars now and 500,000 is like a dream which may never come true.  I think we should be realistic in predicting the prices.

Incorrect!

Read the fucking thread before you post. I am not your damn secretary!

All the $billionaires and $trillionaires will be doing their settlement in BTC.

It will be $500,000 per BTC.

That is obvious.

You don't seem to understand money very well. And I am not going to write a treatise here. It isn't my responsibility to fix your ignorance about money. I say this forcefully because it behooves you to do some learning so you stop spouting off incorrect judgments.

You said this in that other thread where the first Snapchat investor said it's going $500,000 by 2030, that you agree with that prediction.

2030 is 13 years from now

Current price: $1200

That's $498,800 to go in 13 years, which according to my third grade math means BTC should raise around $38369 per year if your theory is correct.

Isn't this a bit nuts? How can BTC grow so much in 13 years? It would need to go parabolic in an unprecedented way. It would redefine the meaning of going parabolic. Nothing ever has grown this much, not even Berkshire Hathaway Class A stock. We are looking at insane levels of growth in a parabolic way in the last 3 years before 2030 is hit and by the time the curve of coin release starts being flat:



So if this is of any guidance, by about 2025 we would need to start seeing some serious shit, like legit insanity of price growth. And I say parabolic, because I don't see anything near $38369 per year happening any time soon if the growth was more or less linear, so it must be next-level parabolic. We would need to be seeing gold whales, stock whales, fiat whales, everything, moving money onto bitcoin to hodl there (or transact within the blockchain but never leaving BTC).

We are talking about 5 figures of growth per day in the last period... this is insane and would cause heart attacks left and right from hodlers that become rich in such a extreme way.

We are looking at current mega whales (considering they don't sell along the way) becoming the richest men on earth, maybe surpassing Rotchilds? I don't know how many BTC the mega rpietila and MP tier whales have, but at $500,000 per BTC they would become stupid rich, maybe first trillionaires ever (as a single guy owning +trillion).

I don't know, the growth required for $500,000 in 13 years seems too much. It would be something never seen before, books would be written about it, kids would learn about it in schools. It would be all over the planet, minds would explode, people that didn't buy at $1000 would hang themselves with a belt.

"The greatest shortcoming of the human race is our inability to understand the exponential function". Al Barlett on Growth and Sustainability

Compute: (500000÷1200)(1÷13) = 1.59

Thus to reach $500,000 in 13 years from a starting price of $1200, a compounded rise in price of 59% per year is all that is required.

Do you understand now why I think @dinofelis is very mathematically near-sighted.

The chart you showed is not constant compounded growth, but rather logistic growth. Indeed we should expect Bitcoin to be logistic, because nothing can grow at a constant exponential rate forever. Since the $10 entry price in early 2013 to the recent $1300 price, Bitcoin has averaged 237% gain per year compounded. So we can see that Bitcoin's price is rising much faster than 59% per year right now and so by 2030 the price rise can slow down to much less than 59% per year and still reach $500,000. I believe @rpietila did some logistic models of potential BTC prices.

If we assume a 75% compounded rate (for the equivalent logistic model) from now until 2024, then the BTC price will rise 50X, thus $60,000 and the market cap will be $1.2 trillion.

Of course no one can surpass the elite in BTC wealth, because they mined most of the first 10.5 million Bitcoins.

Most of us won't have enough BTC to stay on chain that long so we will be kicked out to currencies (altcoins or what ever) which are regulated and many of us will have our wealth confiscated by governments gone bezerk with the severe sovereign debt collapse that Bitcoin is going to help cause and make severe.

You say you won't give your private keys, but the government can throw you in jail and torture you. Also I expect by 2024 or so, the elite will have control over the mining and can blacklist addresses they want to.

Why would the elite want to create thousands of new trillionairs?

They aren't. See above.

Why would trillionares need BTC when they own offshore banks?

Offshore banks aren't a reserve currency.
hero member
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April 16, 2017, 01:09:47 PM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.



Really 500,000$ is almost next to impossible for the bitcoin to attain such a price, not even in decade. We are only 1200$ dollars now and 500,000 is like a dream which may never come true.  I think we should be realistic in predicting the prices.
sr. member
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April 16, 2017, 01:03:11 PM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.

Lol. Bitcoin and gold are roughly the same price. Gold is going to $5k max, Bitcoin to $500k.

Buying gold is an impoverishment plan.

Crypto-currency and blockchains will subsume everything.

Tinfoil hats and @dinofelis will be left behind.

Now we know why the Bible says we will throw our gold and silver into the street. Precious metals will become relatively worthless. Remember iron used to be a precious metal (it's documented in Rise of Knowledge, Decline of Finance essay). Commodities are on inexorable trend of lower value (because we can increase their supply at lower costs with new technologies for mining). And gold can't compete with Bitcoin's better attributes.
hero member
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April 16, 2017, 11:01:06 AM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.




You could check the speculation thread and news about the bitcoin. Adoption rate increasing in sky rocket speed. Therefore, we will see the price value as 10000$ with in 5 years. I agree that Gold is traditional and long term asset, but it being use a ornament but bitcoin is a asset, money and payment mode. None of the thing was in history which have features like bitcoins.
Gold and Bitcoin does really have the difference and shouldn't really be compared regarding to their value and movement of their prices.Features would really be different from one another. $10k might be possible but 100k wouldn't be realistic already to consider on these very high price range and back to topic There are lots of people do always claim that they created bitcoin which no one really could able to surpass satoshi.

It has the difference in value, usage around the world and in many more views. It is realistic but that time we may not alive. No one has claimed that bitcoin is invented by one person. If real satoshi come out and claim the copy right of bitcoin. They it will be under controlled about any organization or Government. This is why he is also hided and not been revealed truly. Still I hope this price rise takes to that value soon.
hero member
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April 16, 2017, 07:48:23 AM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.




You could check the speculation thread and news about the bitcoin. Adoption rate increasing in sky rocket speed. Therefore, we will see the price value as 10000$ with in 5 years. I agree that Gold is traditional and long term asset, but it being use a ornament but bitcoin is a asset, money and payment mode. None of the thing was in history which have features like bitcoins.
Gold and Bitcoin does really have the difference and shouldn't really be compared regarding to their value and movement of their prices.Features would really be different from one another. $10k might be possible but 100k wouldn't be realistic already to consider on these very high price range and back to topic There are lots of people do always claim that they created bitcoin which no one really could able to surpass satoshi.
hero member
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April 16, 2017, 07:33:01 AM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.




You could check the speculation thread and news about the bitcoin. Adoption rate increasing in sky rocket speed. Therefore, we will see the price value as 10000$ with in 5 years. I agree that Gold is traditional and long term asset, but it being use a ornament but bitcoin is a asset, money and payment mode. None of the thing was in history which have features like bitcoins.
legendary
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April 16, 2017, 07:21:54 AM
I agree with $500,000 prediction being too high, even $100,000 is still to high. Gold is a 5000 year asset, no way Bitcoin will surpass it in 13 years from now, just not possible! Sorry, but it's nonsense.

sr. member
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April 16, 2017, 06:43:11 AM
It's simplistic but it works well to model situation with reward and risk estimation and how likely a person is going to choose to win.

But im not super fan of it either, but still the pow scheme of bitcoin is plain game theory. Reward vs risk estimation. Risk = mining difficulty.

And it's not so easy to exclude for me that there could be a mathematical model behind it, intentional or not.

The original point of my argument was that iamnotback's argument for a very high fee that will push non-whales out of the blockchain because the whales will be colluding to force the miners to charge high fee on the non-whales to make up the difference based on his version of game theory analysis is invalid.
full member
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They're tactical
April 16, 2017, 06:01:42 AM
To me, game theory is simplistic.
It may be alien-tech advanced AI analytics to some, but not to me.
Game theory is fanciful and sounds sophisticated to some, but not to me.
Sorry.

It's simplistic but it works well to model situation with reward and risk estimation and how likely a person is going to choose to win.

But im not super fan of it either, but still the pow scheme of bitcoin is plain game theory. Reward vs risk estimation. Risk = mining difficulty.

And it's not so easy to exclude for me that there could be a mathematical model behind it, intentional or not.
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