Walter Rothbard
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December 20, 2013, 03:16:11 PM |
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I'm trying to work out what the incentive would be for the non-miners, the ones providing the mastercoin. Basically for them it would operate as a mastercoin to bitcoin exchange? I suspect they would see that as a little bit risky, that they would be more likely to get better rates on the open market.
When you think about it, mining is an operation where the financing is highly distributed, through the exchange system. Person A mines and sells his Bitcoin on the open market; Person B purchases the Bitcoin that A put up for sale. B is really a miner, in a sense - he's the one financing the operation. Or say Person C mines for boogercoin and sells it on an exchange for Bitcoin; Person D purchases boogercoin for Bitcoin on the exchange. There's nothing in the blockchain that makes it happen, but Person C is really actually mining for Bitcoin just like Person B in my previous example, using Person D as an intermediary.
My head is spinning now...
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