I guess we should first define by what function of a bank you are referring to? With BTC, every individual is essentially their own bank.
Secondly, it's important to make the distinction between a mining pool and a mining farm. A pool being a consortium of miners' (individuals') hashpower, while a farm; a centrally operated collection of miner hardware. My apologies if this is already understood, but it's necessary to differentiate the two.
Topic: Will Mining Farms become the new banks of the world? (Read 400 times)
Hi there,
I have not posted in bitcoin talk to much, I just created this account. Does not take away the fact that I'm pretty good with money.
My view on your question:
Some pools are very big indeed. But, as the main rule of demand and supply will apply here: the cheapest for the best will always win. So, in other words, if one really big pool would increase it's transactions fees, and would be more expensive than, lets say, the second biggest pool, the second biggest pool will draw a lot of attention and people will start moving there instead. The pool that is the biggest, and wants to profit from its size, will always have to look out for the other options that people have.
So, all the pools must make price increases / negotiations (which is illegal in the corporate world, but of course not in bitcoin because its "free" from rules) to get the transaction fees up. But there will always be a supply - demand, so I think prices will not go up that much
The best service for the right price will win!
I have not posted in bitcoin talk to much, I just created this account. Does not take away the fact that I'm pretty good with money.
My view on your question:
Some pools are very big indeed. But, as the main rule of demand and supply will apply here: the cheapest for the best will always win. So, in other words, if one really big pool would increase it's transactions fees, and would be more expensive than, lets say, the second biggest pool, the second biggest pool will draw a lot of attention and people will start moving there instead. The pool that is the biggest, and wants to profit from its size, will always have to look out for the other options that people have.
So, all the pools must make price increases / negotiations (which is illegal in the corporate world, but of course not in bitcoin because its "free" from rules) to get the transaction fees up. But there will always be a supply - demand, so I think prices will not go up that much
The best service for the right price will win!
Now that I found the rules (not too clear where they were and I've been waiting ages for bitcointalk to allow me to post humph) here is my first post that I'm hoping will give me access to ask freely.
My thought for the day is: There are only a few mining pools that have become the beasts of the bitcoin mining field. With these pools likely retaining the ability to claim the transaction fees of all coins mined, do you all think that the pools will be the banks of the future?
If you think about it, once all coins are mined or a very large portion, money will always flow through their doors as they charge a nominal transaction fee of billions of transactions a day. Sounds like a profitable business to be in but highly competitive as I think we are already seeing.
Comments please.
My thought for the day is: There are only a few mining pools that have become the beasts of the bitcoin mining field. With these pools likely retaining the ability to claim the transaction fees of all coins mined, do you all think that the pools will be the banks of the future?
If you think about it, once all coins are mined or a very large portion, money will always flow through their doors as they charge a nominal transaction fee of billions of transactions a day. Sounds like a profitable business to be in but highly competitive as I think we are already seeing.
Comments please.
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