With far more rapid advances in the technology of processing than mining, the rules have already been changed to stop some form of mining. This is effectively a form of revaluation of the currency.
sebastien galy
on Apr 2, 4:33 PM said:
@Eero Tulppala:
Thank you for your comments, they are most informative. The information comes directly from wikipedia entries on bitcoins. It does specifically state that the rules were modified to forbid some form of mining (i dont talk about timing as some say). My little bit is just to add a standard fx valuation framework (valuation via relative money supplies and prices) and passing the word around in my space.
Lets try to figure it out, if that comment is really by him then he seems interested. I think the "rule change" may be referring to a combination of the increase in difficulty and block reward size. The currency is revalued because to some degree it is worth more if the network is more secure, and also if the rate of generation has decreased. The forms of mining refers to, as Piper said, "CPU to GPU to Asics".
As for this:
“Monetary Approach” - One way to value bitcoins would be to compare the money supply of the US vs bitcoins. That simplistic approach would make bitcoins very valuable if they end up being able to buy the same USD asset. This is a supply approach and easily insolvable.
The last part doesn't make much sense to me but he seems to be saying that just looking at the number of dollars and comparing that to the number of bitcoins is not a good way to assess the value. Perhaps there is a language barrier?
