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From: "Jorge Timón" <jtimon@jtimon.cc>
To: Gavin Andresen <gavinandresen@gmail.com>
Cc: Bitcoin Development <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] Block Size Increase Requirements
Date: Sun, 31 May 2015 16:46:58 +0200	[thread overview]
Message-ID: <CABm2gDoE5kbE2cnFzZPAOZbHMdXBaZG7pB7c6dovj=1unPentw@mail.gmail.com> (raw)
In-Reply-To: <CABsx9T3qPiQ+PL3ZNT+QJzw4ALEzKjMjC4=uEKTG+4vVPdXr-g@mail.gmail.com>

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On May 30, 2015 10:38 PM, "Gavin Andresen" <gavinandresen@gmail.com> wrote:
>
> Mining is a competitive business, the marginal miner will ALWAYS be going
out of business.
>
> That is completely independent of the block size, block subsidy, or
transaction fees.

No, the later determines who can be profitable.
Here's a thought experiment:

Subsidy is gone, all the block reward comes from fees.
Miner A has great connectivity and mines 20 MB blocks, with an average of
20 btc per block.
Miner B has a connectivity such that 2 MB blocks puts it on a reasonable
orphan rate, so it gets an average of 2 btc per block mined.
But the difficulty is the same for all and it can rise up to miner A
breaking even after energy costs.
Will miner B be profitable with this setup? The answer is no and miner B
will just go out of business. In that sense too, bigger blocks mean more
mining centralization.

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  reply	other threads:[~2015-05-31 14:47 UTC|newest]

Thread overview: 67+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
2015-05-07 22:02 [Bitcoin-development] Block Size Increase Requirements Matt Corallo
2015-05-07 23:24 ` Joseph Poon
2015-05-08  0:05 ` Peter Todd
2015-05-08  6:33   ` Arkady
2015-05-08 10:03 ` Mike Hearn
2015-05-08 16:37   ` Peter Todd
2015-05-08 19:47     ` Tier Nolan
2015-05-09  3:08       ` Peter Todd
2015-05-16  4:39         ` Stephen
2015-05-16 11:29           ` Tier Nolan
2015-05-16 11:25         ` Tier Nolan
2015-05-29 22:36 ` Gavin Andresen
2015-05-29 23:25   ` Matt Corallo
     [not found]     ` <CABsx9T3__mHZ_kseRg-w-x2=8v78QJLhe+BWPezv+hpbFCufpw@mail.gmail.com>
2015-05-30 19:32       ` Matt Corallo
2015-05-30 20:37         ` Gavin Andresen
2015-05-31 14:46           ` Jorge Timón [this message]
2015-05-31 14:49             ` Gavin Andresen
2015-05-31 14:59               ` Jorge Timón
2015-05-31 15:08                 ` Gavin Andresen
2015-05-31 15:45                   ` Jorge Timón
2015-05-29 23:42 ` Chun Wang
2015-05-30 13:57   ` Gavin Andresen
2015-05-30 14:08     ` Pindar Wong
2015-05-30 22:05     ` Alex Mizrahi
2015-05-30 23:16       ` Brian Hoffman
2015-05-31  0:13         ` Alex Mizrahi
2015-05-31  5:05       ` gb
     [not found]     ` <CAFzgq-z5WCznGhbOexS0XESNGAVauw45ewEV-1eMij7yDT61=Q@mail.gmail.com>
2015-05-31  1:31       ` [Bitcoin-development] Fwd: " Chun Wang
2015-05-31  2:20         ` Pindar Wong
2015-05-31 12:40         ` Gavin Andresen
2015-05-31 13:45           ` Alex Mizrahi
2015-05-31 14:54             ` Gavin Andresen
2015-05-31 22:55               ` Alex Mizrahi
2015-05-31 23:23                 ` Ricardo Filipe
2015-05-31 23:40                   ` Pindar Wong
2015-05-31 23:58                     ` Ricardo Filipe
2015-06-01  0:03                       ` Pindar Wong
2015-06-01  7:57                   ` Alex Mizrahi
2015-06-01 10:13                     ` Mike Hearn
2015-06-01 10:42                       ` Pindar Wong
2015-06-01 11:26                         ` Peter Todd
2015-06-01 12:19                           ` Pindar Wong
2015-06-01 11:02                       ` Chun Wang
2015-06-01 11:09                         ` Pindar Wong
2015-06-01 11:20                         ` Chun Wang
2015-06-01 13:59                           ` Gavin Andresen
2015-06-01 14:08                             ` Chun Wang
2015-06-01 15:33                               ` Mike Hearn
2015-06-01 16:06                                 ` Ángel José Riesgo
2015-06-01 14:46                             ` Oliver Egginger
2015-06-01 14:48                               ` Chun Wang
2015-06-01 16:43                             ` Yifu Guo
2015-06-01 20:01                             ` Roy Badami
2015-06-01 20:15                               ` Roy Badami
2015-06-01 13:21                         ` Mike Hearn
2015-06-01 12:29                       ` Warren Togami Jr.
2015-06-01 13:15                 ` Gavin Andresen
2015-05-31 12:52         ` Gavin Andresen
2015-05-31 13:31           ` [Bitcoin-development] [Bulk] " gb
2015-05-31 19:49             ` Gavin Andresen
2015-05-31 14:17           ` [Bitcoin-development] " Dave Hudson
2015-05-31 14:34         ` Yifu Guo
2015-05-31 14:47           ` Gavin Andresen
2015-05-31  7:05   ` [Bitcoin-development] " Peter Todd
2015-05-31 12:51     ` Gavin Andresen
2015-05-30 23:18 Raystonn
2015-05-31  0:32 ` Alex Mizrahi

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