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Author Topic: What Keeps You in BTC for the Long Haul?  (Read 2714 times)
Heathrow (OP)
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March 16, 2013, 03:39:53 AM
 #41

The question is whether there will be enough such people to keep BTC decentralized and secure when the massive ASIC farms start coming online.

My question is why would there not be?

Because the math looks poor.  If I were to place an order for a Jalapeno now, by the time it arrived I wouldn't pay it off for a year or longer, and after that, I'd be making next to nothing (at current BTC prices).  The investment looks very poor even if one assumes BTC prices will rise a fair bit.  Frankly, the only reason I can see for buying a Jalapeno now is to help the BTC network (and it's not much help!).  You'd have to gather quite a lot of willing folks who don't care about the math in order to sustain a decentralized network.

Now this isn't as significant a problem for folks who are already on Jalapeno preorder.  They'll stand a better chance of making their investment back more quickly, but they'll very shortly be making almost nothing.  The profit motive here is tenuous.  But maybe you think something other than profit is going to motivate all these people?

To the extent that there is a profit motive for speculators, they'll be motivated to BUY BTC with FIAT, not flush money down the drain buying a Jalapeno.

Try to convince me to buy a Jalapeno.  Why should I do it?  Out of the generosity of my heart?  Because I want to promote a decentralized currency even if it doesn't profit me to do so?  Because that's what a good person would do?

markm
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March 16, 2013, 04:55:23 AM
 #42

http://dustcoin.com/mining

So far most "rich bitcoin mines" seem to dismiss altcoins as beneath their notice.

Possible volume might have something to do with that: quantities that might look quite attractive to a hobbyist looking for chains to add to his merged-mining portfolio might look like chickenfeed to multi million dollar "mini"-rig farms.

Small miners who aren't really making anything at their bitcoin mining can subsidise it by earning on quite a few other chains alongside, assuming the large firms are not able to squeeze them out by making the bandwidth (etc) cost to the small merged miner of the bitcoin chain alone too large to leave any bandwidth (etc) for processing a multitide of merged chains alongside.

Possibly though as the budget crunch approaches more pools will see the addition of more chains to their merge to be something their users might appreciate...

-MarkM-

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