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0 pointsjobeirne12y ago0 comments

Thanks for the concrete counterexample. I still find it dubious that the owner of Bank A would be willing to destroy a stream of income as considerable as a 51% stake in BTC just to preempt a competitor in another market. That seems too self-sacrificial to be practical.

Also, you're missing the point that Bank B's successful adoption of BTC would also benefit Bank A's owner, since that adoption would be a boon for BTC, which Bank A owner has a very large stake in.

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2 comments · 2 top-level

msandford12y ago

It's all a matter of the right price. Bank A doesn't own 51% of bitcoin, it has control over 51% of the mining pool. As a rational agent in the bitcoin-only world that's worth SOMETHING but not billions. As a rational agent in the total world it might be worth sacrificing $100mm on the pool if it can cost your competitor $10b.

jre12y ago

Good points. What I wanted to point out is that the typical arguments about an agent's incentives to not destroy BTC usually fail to take into account gains outside of the BTC world.

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