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0 pointsrafaelero5y ago0 comments

> Crypto-currency has inbuilt hierarchy, as people with more hashrate have proportional power over the monetary system.

If this is the case, please illuminate us why they don't use their influence to increase block size or block rewards.

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6 comments · 1 top-level

sudosysgen5y ago· 5 in thread

It's very simple. The price of Bitcoin converges towards the price of mining it. Making mining bitcoin easier will only lower its price in the long run. So increasing block size will only increase the amount of hashrate in the system and thus the profit per dollar invested will not change that much.

Given this information, is it worth rocking the boat while mining is still very profitable? No.

> The price of Bitcoin converges towards the price of mining it.

Isn't it the opposite. The cost of mining converges towards the current price of Bitcoin. Because when miners get Bitcoin as a reward they immediately sell it for profit.

sudosysgen5y ago

Well, yes, you could see it that way.

rafaeleroOP5y ago

That's a shortsighted approach, in my opinion. The same pattern is observed in inflation: long-term, money printing has zero benefits. Why central banks do it anyway? Because there's a first mover advantage. Also, history has already showed us that, when given the opportunity, miners are in favor of larger rewards.

sudosysgen5y ago

No, money printing has a serious advantage. It incentivize investment while taxing people who hold their money unproductively.

rafaeleroOP5y ago

Yes, it incentivizes investing in better store of value like bitcoin (or gold, or Apple stocks).

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