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Title: Stable Economy Tactics Post by: legolouman on September 01, 2011, 06:20:50 PM The bictoin system tries to keep it's self stable and deflated. When the key of 6 blocks an hour is changed, the difficulty changes with it. If the system allows inflation to occur, by not quickly changing the difficulty fast enough, values of BTC fall horribly, and we become screwed.
From a miner's perspective it seems as though the whole economy thing will kill Bitcoin. Can anyone think of a new way to keep a stable economy, while still allowing expansion of the BTC community, value, and the like? Title: Re: Stable Economy Tactics Post by: wndrbr3d on September 01, 2011, 06:28:18 PM Not true, since there isn't an infinite number of blocks that can be generated within the time span of a difficulty increase.
The maximum number of blocks that can be generated between difficulty adjustments is 2016 blocks, at which point if they were discovered all in 5 minutes, difficulty will adjust accordingly. The opposite of what you're saying could happen though, in that someone could nerf the mining market by essentially DOSing mining by introducing MULTIPLE TERAHASH within a single 2016 block span, then pull it. At which point difficulty could double or triple, making the next 2016 block span take so long that it would obliterate mining returns. Title: Re: Stable Economy Tactics Post by: legolouman on September 01, 2011, 06:57:33 PM Not true, since there isn't an infinite number of blocks that can be generated within the time span of a difficulty increase. The maximum number of blocks that can be generated between difficulty adjustments is 2016 blocks, at which point if they were discovered all in 5 minutes, difficulty will adjust accordingly. The opposite of what you're saying could happen though, in that someone could nerf the mining market by essentially DOSing mining by introducing MULTIPLE TERAHASH within a single 2016 block span, then pull it. At which point difficulty could double or triple, making the next 2016 block span take so long that it would obliterate mining returns. So basically, mine in moderation, because if one were to mine with an "uber rig" not only would it make them a brief fortune, but ruin costs and the community. I can see that. Title: Re: Stable Economy Tactics Post by: onesalt on September 01, 2011, 11:10:07 PM The bictoin system tries to keep it's self stable and deflated. When the key of 6 blocks an hour is changed, the difficulty changes with it. If the system allows inflation to occur, by not quickly changing the difficulty fast enough, values of BTC fall horribly, and we become screwed. From a miner's perspective it seems as though the whole economy thing will kill Bitcoin. Can anyone think of a new way to keep a stable economy, while still allowing expansion of the BTC community, value, and the like? Peg the value of the BTC to the dollar, only allow trades at the established dollar rate. Bitcoin usage increases as it becomes a reliable way to transfer funds instead of a huge gamble. Title: Re: Stable Economy Tactics Post by: legolouman on September 02, 2011, 04:36:36 AM I was thinking that, but then you lose the ability to expand. What if you do that, but then slowly decrease the value (such as inflation) so more of it spreads around? Of course it could cause a crash still
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