public inbox for bitcoindev@googlegroups.com
 help / color / mirror / Atom feed
From: Eric Voskuil <eric@voskuil.org>
To: Mark Friedenbach <mark@friedenbach.org>,
	Bitcoin Protocol Discussion
	<bitcoin-dev@lists.linuxfoundation.org>
Cc: Ilan Oh <ilansky.sharkson@gmail.com>
Subject: Re: [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal (Chaofan Li)
Date: Mon, 22 Jan 2018 14:52:23 -0800	[thread overview]
Message-ID: <E39CFE95-1A0D-413B-8AC1-7A9BE20737BC@voskuil.org> (raw)
In-Reply-To: <091F89E0-FBA0-42F9-9166-CF121A84319F@friedenbach.org>

This is true but confuses people because obviously miners must commit capital to mining before any block space can exist to have value. The reason for the misunderstanding is that miners don’t simply respond, they anticipate. All production, and therefore capital investment, is the result of anticipation of future returns, not an attempt to chase past returns.

The first miner anticipated that the then-worthless “tokens” he was mining would have a future value. Turns out he was right. Others have been wrong, which is the nature of betting on future prices. But if nobody does it, there are no products.

e

> On Jan 22, 2018, at 11:59, Mark Friedenbach via bitcoin-dev <bitcoin-dev@lists.linuxfoundation.org> wrote:
> 
> 
>> On Jan 22, 2018, at 11:01 AM, Ilan Oh via bitcoin-dev <bitcoin-dev@lists.linuxfoundation.org> wrote:
>> 
>> The chain with the most mining power will tend to have more value.
> 
> I believe you have the causality on that backwards. The tokens which are worth more value will attract more mining hash rate. Miners respond to cash-out value, they don’t set it.
> 
> _______________________________________________
> bitcoin-dev mailing list
> bitcoin-dev@lists.linuxfoundation.org
> https://lists.linuxfoundation.org/mailman/listinfo/bitcoin-dev


  reply	other threads:[~2018-01-22 22:52 UTC|newest]

Thread overview: 8+ messages / expand[flat|nested]  mbox.gz  Atom feed  top
     [not found] <CALTsm7iyJjQa5rkddZj2jL_BTdGxH+6Xz78Rt0wOqW1OveecHw@mail.gmail.com>
     [not found] ` <CALTsm7gQC8RejAhmobzejEoU4T7xLf77Ykk2m0p=Z2=oM2p0Uw@mail.gmail.com>
2018-01-22 19:01   ` [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal (Chaofan Li) Ilan Oh
2018-01-22 19:59     ` Mark Friedenbach
2018-01-22 22:52       ` Eric Voskuil [this message]
2018-01-23  0:38 Chaofan Li
2018-01-23  4:57 ` Eric Voskuil
2018-01-23  5:47   ` Chaofan Li
2018-01-30  5:32     ` ZmnSCPxj
2018-01-30  6:20       ` Chaofan Li

Reply instructions:

You may reply publicly to this message via plain-text email
using any one of the following methods:

* Save the following mbox file, import it into your mail client,
  and reply-to-all from there: mbox

  Avoid top-posting and favor interleaved quoting:
  https://en.wikipedia.org/wiki/Posting_style#Interleaved_style

* Reply using the --to, --cc, and --in-reply-to
  switches of git-send-email(1):

  git send-email \
    --in-reply-to=E39CFE95-1A0D-413B-8AC1-7A9BE20737BC@voskuil.org \
    --to=eric@voskuil.org \
    --cc=bitcoin-dev@lists.linuxfoundation.org \
    --cc=ilansky.sharkson@gmail.com \
    --cc=mark@friedenbach.org \
    /path/to/YOUR_REPLY

  https://kernel.org/pub/software/scm/git/docs/git-send-email.html

* If your mail client supports setting the In-Reply-To header
  via mailto: links, try the mailto: link
Be sure your reply has a Subject: header at the top and a blank line before the message body. 
This is a public inbox, see mirroring instructions
for how to clone and mirror all data and code used for this inbox