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Inflation comes from mining rewards 50 a block for bitcoin or 300 per hour or $900 per hour. Big price to pay to keep system up. Each block use to be 4 mb in size, today it is less than 2 mb in size. People like an appreciating currency, they want those. If bitcoin started as a deflationary currency it would be priced over $100 by now and be taking over the world.
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I would like to see merged mining on iocoin to protect it and end all the mining rewards except transactions. Preferably with a 5% tax which is deleted.
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If the cost of electricity exceeds the price of BTC, the mining stops anyways.
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It says nodes, not miners. Nodes that hash blocks are called miners. Verifying transactions is useful to ensure the person sending coins is the owner but they don't prevent a double spend. The creation of the block chain is what prevents a double spend. This requires significant resources to ensure an attacker doesn't have more computing power than the rest of the "good network". The larger the network is the more difficult it would be for an attacker to amass enough computing power to make a "false" blockchain longer and thus accepted by the network. That network has a cost. It isn't free. It requires computing resources, bandwidth, and electricity. The more powerful the network the safer every participant in the network is. Someday transaction fees will be able to support the network but today block rewards (subsidies) pay for the network and at the same time provide an initial distribution of the monetary supply. I mine you buy. I thought you said you were done? Because there are still people with talent that can devise a deflationary system. I think Coblee might have solved it above with one large mining pool. Furthermore, looking at the bitcoin graph what makes anyone think the bitcoin network will be large enough to protect the network in 20 years, should that not be automatic. |
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I read the 5 -minute article. It says nodes, not miners. In a bittorrent network, is anyone connected to the network. To protect their coins, people will keep their client open to verify transactions. Mining is needed to prevent sybil attacks. I mine you buy.
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If the present bitcoin system has to have 20% transaction fee to protect it, I am out! Then what are you doing here? All block chains require subsidies. The network needs to be large enough to survive an attack even when transaction volume is low. If you don't think transaction volume will grow to support the network without subsidies you SHOULD leave. I am curious how you can have >200 posts and no clue how blockchains work, the need for block subsidies, the effect of slowing subsidies on the economy, how the size of bitcoin economy affect the price of a bitcoin, etc. Honestly not joking... you probably you "be out". Because it was suppose to be based on bittorrent. If bittorrent is protected with no mining fees and no transaction fees, why can't bitcoin. I will mine and start new chains to make money and will not hold. What will cause the network to grow is deflation. Zimbabwe is an example of an economy that did not grow with inflation even though gdp rose every year by 100%. Well I have been out when I sold my BTC at $20, and put it in a stock that doubled. Looking for a deflationary currency to invest and build businesses in. the owners of coin should protect the system, not rely on miners that care less about the system. |
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I have a bitcoin business I sell socks I sell a pair of socks for 100 btc. I take that money and exchange it for $. 1 year later I sell a pair of socks for 1000 btc. I take that money and sell it for $. How does the gdp have any impact on the currency value? The currency can only have value if I work and earn 100 btc. If I think btc is going up or retain value I will keep it, otherwise I will sell it. Why should i save money so the miners can spend it.
If the present bitcoin system has to have 20% transaction fee to protect it, I am out!
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That isn't inflation rate. US monetary supply has grown 550,000% since the country was founded has the price of good increased 550,00%.
Inflation is the difference between monetary supply growth and economic growth.
If money supply grows 10% and economy grows 10% then inflation is 0%.
If money supply grows 10% and economy grows 5% then inflation is 5%.
If money supply grows 5% and economy grows 10% then DEFLATION is 5%.
Still even money supply growth is continually slowing down as block rewards approach 0. In a year Bitcon money supply will be growing by closed to 6% annually. In 5 years it will be closer to 4% annually. In 10 years it will be closer to 2%. In 20 years it will be 0%.
So
1) block rewards are essentially to support transaction network while economies grows to a point where transaction FEES can replace block rewards
2) the growth in monetary base is continually declining.
3) inflation is not the rise in monetary base. If it is the difference between growth in economy and growth in the money supply.
Lastly NONE OF THIS HAS ANYTHING TO DO WITH POOLS. The amount of Bitcoins (or Litecoins, or SolidCoins) will grow regardless of if everyone is mining solo, mining in pools, mining distributed pool, or all mining in one giant pool. Your share of block rewards doesn't change. If you have 0.01% of network hashing power your share is 0.01% of rewards and/or fees regardless.
If in 20 years it will be 0%, why not just jump ahead 20 years and use the mining/transaction fee formula for that era. The economy can only grow if the currency is strong. Why would anyone want to take part in an economy with 10% monetary inflation (unless they are forced to). Yes, you might own a business, but why would you save? No thanks I will take gold, where the currency has strength. |
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Block rewards pay for the cost of running the network. Those servers, GPU, electricity aren't free. That is true of any blockchain.
People being in pools or using a distributed pool or everyone solo mining doesn't change that.
Not sure why you think a distributed pool or solo-mining somehow changes the underlying mechanics of the blockchain. Hint; it doesn't.
If you need 10% inflation to protect the network, then bitcoin is worthless. What 10% inflation? I think you don't have any understanding how Bitcoin or any block chain works. The number mined a year / total number of coin in existence is the inflation rate. I don't have an understanding of how a blockchain works. But, if you need to mine at a 10% inflation rate to protect it, it is worthless. |
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IXcoin - Nakasiato or whatever needs to quit talking about fixing the Time Travel Exploit and rework the difficulty algo and release it.
I say just go back to a fixed block cycle, independent of duration. Maybe not 2016, but something smaller. Keep the asymmetric retarget schedule though, unless there's something about it that is the cause of an exploit. The problem big miners come in, run the difficulty up to a million and then leave, making the block chain crawl for weeks or months till the next target is hit. Slush did this on purpose to NMC. Nasakioto already fixed this, in fact the retarget is shorter than solidcoin. like 144 blocks. Nasakioto is working on ixcoin. I think anyone can work on iocoin, but you could also split on iocoin. |
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Block rewards pay for the cost of running the network. Those servers, GPU, electricity aren't free. That is true of any blockchain.
People being in pools or using a distributed pool or everyone solo mining doesn't change that.
Not sure why you think a distributed pool or solo-mining somehow changes the underlying mechanics of the blockchain. Hint; it doesn't.
If you need 10% inflation to protect the network, then bitcoin is worthless. |
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I think satoshi never really thought or wanted pools. He wanted the client to mine. I think you should mine at 1,000 per block for 2 weeks, then end the mining or at 1 per block, with a 10% sales tax which is destroyed.
First of all mining/hashing can NEVER END or the block chain ends. If you mean end block rewards, you do realize there isn't sufficient transaction volume to support hashing network right now without block rewards. Current fees are ~1% of block rewards. Thus if all block rewards ended tomorrow network hashing power would fall to 1% of current. It is simply supply and demand. The cost to produce a block would need to be 1% of current cost and that would require 1% the difficulty and thus 1% the hashing power. That would put global hashing power for bitcoin at ~12GH/s. A trivial task for someone to 51% and double spend. Satoshi was very smart w/ concept of block rewards. They distribute wealth and at the same time create a subsidy to keep network functioning and secure until such time that transaction volume can support the network without subsidies. Bock rewards/subsidies are a solution to the dilema of: a) how do you pay for a large/secure network if transaction volume if low? b) if network is small/weak how will people trust it enough for transaction volume every grow? Then I would have to say bitcoin is worthless to retain value and you my as well buy gold. It you are forced to have an inflationary currency, why would anyone want to hold it? Is not bittorrent protected? I think coblee came up with the idea of only having 1 pool and everyone mines from the pool. Thus, if the pool is not controlled by anyone, you won't need the 20%+ inflationary block rewards. |
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How about 1 BTC for 100,000. You could also use post on megssage boards. Say 100x the number of posts on this message board get you so many coin.
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I think satoshi never really thought or wanted pools. He wanted the client to mine. I think you should mine at 1,000 per block for 2 weeks, then end the mining or at 1 per block, with a 10% sales tax which is destroyed.
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iocoin and ixcoin have never died, you can still mine them.
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I think Nasakioto was writing about the time warp bug and having you fix that. I think he is working on fixing this already.
I think iocoin has already been near dead a couple times.
SC1 was already used in SC2.
As you know I am a deflationist and would like to see a massive experiment on deflation. I would not even mine to see 20% transaction tax with 5% going to miners and 15% deleted. I think ioccoin with merged mining would be awesome for this.
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MT GOX went down several days and had little effect on the price of bitcoin. MT GOX is just an exchange service and has little effect on the overall price of bitcoin. There are dozens of exchanges already, and I am sure most would be happy if MTGOX burned. From the ashes a new forest will grow.
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Bring it back as 1st deflationary coin.
* merged mining (preferably cpu mining)
* difficulty change every 20 blocks
* 1 block every 2 minutes
* 2% tax, 0.5% going to miners 1.5% destroyed.
* minimum tax based off difficulty (thus it never needs to be changed) to prevent attacks.
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I really like the idea of a small sales tax on a crypto-coin, like 1%-5% with the end of mining known rewards. With a portion deleted and a portion going to miners.
1. The owners of the coin will like the deflation the amount of coin will diminish and the price will go up.
2. The businesses won't care, they will just increase the prices. They want owners/consumers of the coin.
3. The consumer won't care all they want is something to buy.
4. The miners deserve little or nothing, however having it attached to a bigger transaction will create sort of a game. If the economy grows, the sale tax might actually be larger than the 96.
People mine today because it is the easiest way to get coin, it adds little value and the first coin that ends the mining will benefit the most. ixcoin is the 1st coin slated to end the mining, I just wish we could end the mining now.
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To stop a BitCoin network you would need to break every single BitCoin node. - quote by SD
Would merged mining stop the time travel exploit?
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