Bitcoin Forum
December 06, 2016, 02:24:48 PM *
News: Latest stable version of Bitcoin Core: 0.13.1  [Torrent].
 
   Home   Help Search Donate Login Register  
Pages: [1]
  Print  
Author Topic: Network stability  (Read 597 times)
EmilyClark
Newbie
*
Offline Offline

Activity: 14


View Profile
June 21, 2011, 09:26:29 PM
 #1

Rewarding people for being on the network (mining) was a brilliant idea. The hope is that this creates a network stable enough that people begin trading in bitcoin. Then, once the reward for mining diminishes, people still want to be on the network because it is valuable for trading.

BUT, this means that mining profitability should not decrease before bitcoins become popular with lots of people for non-mining activities. It's possible that mining profitability will go down (lots of new rigs, reward eventually dropping to 25btc) before bitcoins are popular enough. What happens then? Lots of miners leave the network... What then?
1481034288
Hero Member
*
Offline Offline

Posts: 1481034288

View Profile Personal Message (Offline)

Ignore
1481034288
Reply with quote  #2

1481034288
Report to moderator
1481034288
Hero Member
*
Offline Offline

Posts: 1481034288

View Profile Personal Message (Offline)

Ignore
1481034288
Reply with quote  #2

1481034288
Report to moderator
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise here.
1481034288
Hero Member
*
Offline Offline

Posts: 1481034288

View Profile Personal Message (Offline)

Ignore
1481034288
Reply with quote  #2

1481034288
Report to moderator
1481034288
Hero Member
*
Offline Offline

Posts: 1481034288

View Profile Personal Message (Offline)

Ignore
1481034288
Reply with quote  #2

1481034288
Report to moderator
1481034288
Hero Member
*
Offline Offline

Posts: 1481034288

View Profile Personal Message (Offline)

Ignore
1481034288
Reply with quote  #2

1481034288
Report to moderator
luxgladius
Newbie
*
Offline Offline

Activity: 28


View Profile
June 22, 2011, 01:16:06 PM
 #2

It's already happened. Mining is disabled in the default client right now as you just don't have a reasonable chance of solving any block in competition with dedicated mining setups.
cothoms
Newbie
*
Offline Offline

Activity: 14


View Profile
June 22, 2011, 02:49:07 PM
 #3

Emily,

While I can definitely see where you are coming from, I think miners have a bit different perspective.  BTC can not survive without miners since they are responsible for processing transactions.  If the reward becomes too small, miners will leave and the overall health of the BTC will suffer.  So, many are hoping that, with reduced mining efficiency, comes greater rewards, primarily through BTC appreciation.

Not a miner.  An investor, speculator, and enthusiast.
EmilyClark
Newbie
*
Offline Offline

Activity: 14


View Profile
June 22, 2011, 05:37:45 PM
 #4

Exactly. That's the hope. What I am saying is that, if the timing doesn't work out right, it could be very bad..
Pages: [1]
  Print  
 
Jump to:  

Sponsored by , a Bitcoin-accepting VPN.
Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!