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Title: bitcoin production curve Post by: gubi66 on September 24, 2013, 05:28:06 AM Hi everybody,
there is a reason why the bitcoin production curve is not smooth and instead there is an halve every 4 years? Thanks Title: Re: bitcoin production curve Post by: mezzomix on September 24, 2013, 07:01:24 AM I think the reason is KISS (http://en.wikipedia.org/wiki/KISS_principle).
Title: Re: bitcoin production curve Post by: gmaxwell on September 24, 2013, 02:43:33 PM You can make a bunch of arguments either way. E.g. piecewise constant makes it easier to justify capital purchases, simplifies accounting. etc.
I think ultimately it doesn't matter much... and the geometric decline is much easier to implement without numerical precision issues gumming things up. Title: Re: bitcoin production curve Post by: DannyHamilton on September 25, 2013, 07:34:20 PM Hi everybody, there is a reason why the bitcoin production curve is not smooth and instead there is an halve every 4 years? Thanks Since Satoshi is no longer around answering questions, any answer you get is just going to be an educated guess. My guess? The math is easier that way. Title: Re: bitcoin production curve Post by: cp1 on September 26, 2013, 04:50:10 AM I guess it front loads the reward to help with adoption.
Title: Re: bitcoin production curve Post by: DannyHamilton on September 26, 2013, 04:53:11 AM I guess it front loads the reward to help with adoption. It doesn't really front load the reward any more than a smooth curve. Title: Re: bitcoin production curve Post by: cp1 on September 26, 2013, 06:44:10 AM It doesn't really front load the reward any more than a smooth curve. It's not by a ton, but at the first reward halving it's generated about 25% more bitcoins than a smooth curve would have. |