From: Jeff Garzik <jgarzik@bitpay•com>
To: Alex Mizrahi <alex.mizrahi@gmail•com>
Cc: Bitcoin Dev <bitcoin-development@lists•sourceforge.net>
Subject: Re: [Bitcoin-development] death by halving
Date: Sat, 25 Oct 2014 14:31:55 -0400 [thread overview]
Message-ID: <CAJHLa0M20QjBOwhOwJWJUcPBLzmaX1uuPy-6ytvJQWLZy68aeg@mail.gmail.com> (raw)
In-Reply-To: <CAE28kUSPb3ZC1nJyX7H__7cAgXvOvPbZ+Tub+htGd5+tujZndg@mail.gmail.com>
It is an overly-simplistic miner model to assume altruism is
necessary. The hashpower market is maturing in the direction of
financial instruments, where the owner of the hashpower is not
necessarily the one receiving income. These are becoming tradeable
instruments, and derivatives and hedging are built on top of that.
Risk is hedged at each layer. Market players also forge agreements
with miners, and receive -negative- value if hashpower is simply shut
down.
Simplistic models cannot predict what hashpower does in the face of
business-to-business medium- and long-term contracts.
On Sat, Oct 25, 2014 at 2:22 PM, Alex Mizrahi <alex.mizrahi@gmail•com> wrote:
>
>>
>> "Flag day" herd behavior like this is unlikely for well informed and
>> well prepared market participants.
>
>
> It is simply rational to turn your mining device off until difficulty
> adjusts.
> Keeping mining for 2+ weeks when it costs you money is an altruistic
> behavior, we shouldn't rely on this.
>
> ------------------------------------------------------------------------------
>
> _______________________________________________
> Bitcoin-development mailing list
> Bitcoin-development@lists•sourceforge.net
> https://lists.sourceforge.net/lists/listinfo/bitcoin-development
>
--
Jeff Garzik
Bitcoin core developer and open source evangelist
BitPay, Inc. https://bitpay.com/
next prev parent reply other threads:[~2014-10-25 18:32 UTC|newest]
Thread overview: 29+ messages / expand[flat|nested] mbox.gz Atom feed top
2014-10-25 18:06 Alex Mizrahi
2014-10-25 18:12 ` Jeff Garzik
2014-10-25 18:22 ` Alex Mizrahi
2014-10-25 18:31 ` Jeff Garzik [this message]
2014-10-25 19:08 ` Alex Mizrahi
2014-10-25 19:16 ` Gavin Andresen
2014-10-25 19:53 ` Alex Mizrahi
2014-10-25 21:50 ` Melvin Carvalho
2014-10-28 20:17 ` Ferdinando M. Ametrano
[not found] ` <CAAS2fgSiz-XRVQ4V+KbrTUWG4=g=WGf8c-pF4b4fFnfyU9HOqQ@mail.gmail.com>
2014-10-28 20:36 ` [Bitcoin-development] Fwd: " Gregory Maxwell
2014-10-28 20:57 ` Alex Mizrahi
2014-10-28 21:19 ` Jérémie Dubois-Lacoste
2014-10-28 21:43 ` Gregory Maxwell
2014-10-28 22:43 ` Ferdinando M. Ametrano
2014-10-29 14:34 ` [Bitcoin-development] Death by halving (pro-active proposals) Sergio Lerner
2014-10-29 17:25 ` Jeff Garzik
2014-10-28 21:23 ` [Bitcoin-development] Fwd: death by halving Ferdinando M. Ametrano
2014-10-28 21:34 ` Neil
2014-10-28 21:44 ` Ferdinando M. Ametrano
2014-10-28 22:00 ` Thomas Zander
2014-10-28 22:38 ` Ferdinando M. Ametrano
2014-10-28 21:57 ` Christophe Biocca
2014-10-25 20:27 ` [Bitcoin-development] " Adam Back
2014-10-25 20:43 ` Thomas Zander
2014-10-25 20:28 ` Thomas Zander
2014-10-25 20:49 ` Alex Mizrahi
2014-10-25 21:51 ` Alexander Leishman
2014-10-25 22:10 ` Ross Nicoll
2014-10-25 22:42 ` Melvin Carvalho
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