The Future of Mining

[Anarchaos]

Oh hai guize,I'm a big fat noob.

Anyway I have some thoughts on the future of mining as I see it within the larger context of what Bitcoin is supposed to be about.

"Bitcoin (sign: BTC) is a decentralized digital currency[9][10] based on an open-source,[11] peer-to-peer internet protocol."

If mining goes from a model where the lion's share of hashrate (and thus bitcoin revenue) belongs to a handful of heavy (100k usd+) investors into early ASIC/fpgas that will subsequently grab most of the newly minted bitcoins, does that really make the whole bitcoin thing "decentralized"?

In the same sense, does someone who controls 1500 GH/s+ running 24/7 qualify as a "peer" to some guy with a dual 6870 gaming rig that runs at 550 mh/s when he isn't playing bioshock and when his mom needs to access her email?

[Photonfrog]

The value of each % of all "h/s" should theoretically stay proportional to the total value of the bitcoin economy? I would guess more and more of the hashing power will move towards verification of transactions over time. The miners will then migrate their CPU power from mining towards verifications against a small fee.

[HappyBitCoinUser]

More people jumping on the bandwagon to mine bitcoins, and more people have faster GPU for more hash rate. Also blocks giving out half from before is even less bitcoins than before.

Its only going to get slower and harder to mine bitcoins due to competition and half amount per block.

This will probably keep the value up at least.

[Foxpup]

If mining goes from a model where the lion's share of hashrate (and thus bitcoin revenue) belongs to a handful of heavy (100k usd+) investors into early ASIC/fpgas that will subsequently grab most of the newly minted bitcoins, does that really make the whole bitcoin thing "decentralized"?

Yes, because "most" isn't the same as "all". The big miners earn more than the little miners, but the little miners still get something, in the same way that big companies like Walmart make billions, but that doesn't stop you making a few extra bucks at a garage sale. Also, remember than mining is a business, in which miners sell their computing power for the purpose of securing the network. It is not a get-rich-quick scheme, or a means of distributing money to random people, or anything else. The average Bitcoin user is not expected to mine, or even know what mining is.

In the same sense, does someone who controls 1500 GH/s+ running 24/7 qualify as a "peer" to some guy with a dual 6870 gaming rig that runs at 550 mh/s when he isn't playing bioshock and when his mom needs to access her email?

Everyone running a Bitcoin client is a peer, whether they're mining or not.

[YUSOAWESOMe]

Good question, and thanks for the awnsers!