Re: [tor-talk] Is there any societal use in Bitcoin?
the bitcoin community does not want/has no plans to address the centralization of the network
BTC community? Or cryptocurrency community? Mining centralization? Or node centralization? For many coins 1st priority is not losing value. 2nd priority is philosophy. For them, "we've not lost yet" and "someone else will do it" mentality, so they'll sheepsleep their way into central again, then they lose. Oops. Those with priority philosophy understand that "I have to do it" and "If I sleep, I lose value", their networks are self [re]enforcing herd cooperation, as such, nobody in their right mind would let them go to shit, they'll throw in what they stand to lose. BTC has hit nearly 50% mining odds at least once, then everyone backed off and shuffled pools to prevent. But even that's not enough to fight a rogue mining entity bent on takeover BTC.... There needs to be at least three fully independant manufacturers selling mining gear to the public. Assuming SHA-256 is a commodity, that's max 33% to each maker, plus random buyers into random pools. Right now BTC has roughly one, Bitmain, arguably playing the ride the percent game, plus buyers. Coins could also code up network incentives for decentralization. Everyone runs the same code, all understand they can lose if they don't..
On Friday, September 29, 2017, 12:38:33 AM PDT, grarpamp <grarpamp@gmail.com> wrote:
There needs to be at least three fully independant manufacturers selling mining gear to the public. Assuming SHA-256 is a commodity, that's max 33% to each maker, plus random buyers into random pools.
Question: Why does a bitcoin mining hardware manufacturer WANT to sell that equipment?After all, the theory of transactions is that the seller wants the money more than the product, which the buyer wants the product more than the money. But if the seller could make just as much money as the buyer does, keeping the machines and running them, why should he want to sell? One reason is that the manufacturer might be in an area that has relatively higher electricity costs, and the buyer might be in an area of lower electricity costs. In that case, there is a reason to transfer the machine to the area with lower cost of operation. Jim Bell
On Fri, Sep 29, 2017 at 4:17 AM, jim bell <jdb10987@yahoo.com> wrote:
Question: Why does a bitcoin mining hardware manufacturer WANT to sell that equipment? After all, the theory of transactions is that the seller wants the money more than the product, which the buyer wants the product more than the money. But if the seller could make just as much money as the buyer does, keeping the machines and running them, why should he want to sell? One reason is that the manufacturer might be in an area that has relatively higher electricity costs, and the buyer might be in an area of lower electricity costs. In that case, there is a reason to transfer the machine to the area with lower cost of operation.
Sales profit may be greater than mining profit at times, which can fund production costs to build more hash in waiting for themselves for free. Manu-miners may scheme to posit and flood an older line to market as best of class, and privately mine new tech for free. They could be getting too close to %50 so they just sell for profit into that wall to lower it. Need for old world fiat by traditional means instead of crypto. Philosophy understanding things would go downhill if they didn't support the coin benevolently eg: decentralize it. Because it's fun. Other reasons for sure.
participants (2)
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grarpamp
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jim bell