Subject: Re: [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal (Chaofan Li)

From: Eric Voskuil <[email-masked]>
Date: Mon, 22 Jan 2018 14:52:23 -0800

This is true but confuses people because obviously miners must commit capital to mining before any block space can exist to have value. The reason for the misunderstanding is that miners don’t simply respond, they anticipate. All production, and therefore capital investment, is the result of anticipation of future returns, not an attempt to chase past returns.

The first miner anticipated that the then-worthless “tokens” he was mining would have a future value. Turns out he was right. Others have been wrong, which is the nature of betting on future prices. But if nobody does it, there are no products.

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> On Jan 22, 2018, at 11:59, Mark Friedenbach via bitcoin-dev <[email-masked]> wrote:
> 
> 
>> On Jan 22, 2018, at 11:01 AM, Ilan Oh via bitcoin-dev <[email-masked]> wrote:
>> 
>> The chain with the most mining power will tend to have more value.
> 
> I believe you have the causality on that backwards. The tokens which are worth more value will attract more mining hash rate. Miners respond to cash-out value, they don’t set it.
> 
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