Quote from: philipma1957 on February 09, 2015, 05:01:33 AM

Nice but there is a typo:

Final Thoughts

The Bitcoin design is suprisingly well adjusted for a network in which hash rates are expanding. Given that technologies continually improve then that's probably the right bias as a normal schedule of replacing older, less power efficient, hardware with newer, more power efficient models will tend to see global hash rates increase.

On the surface it looks like it works much less well when we see steady constraction of the global hash rate, but such contractions are much less likely. In general miners will remove their least power effiicient hardware from the network rather than their most efficient, so if the BTC price reduces the impact on the hash rate is significantly dampened.

There is another interesting aspect to the reduced block finding rate. One of the theories about the recent decline in the BTC price is that a lot of the downward pressure comes from miners selling newly-mined coins. If miners start to unplug hardware and the block finding rate falls then some of this pressure will also reduce because fewer coins will be being mined each day. Whether this actually happens or not may be an interesting indicator of what might happen when the block reward halves in 2016.

Everything looks fine till this part:

If miners start to unplug hardware and the block finding rate falls then some of this pressure will also reduce because fewer coins will be being mined each day.
There's only 1 scenario where block finding will fall, (correct me if im wrong)
High hashrate -> lots of miners disconnect -> waiting for the difficulty adjustment -> blocks stop being found as fast -> difficulty adjusted -> blocks are more likely to be found with the current hashrate.
Thus this is going to give a 10 minute average per block as we want, this means that the hasrate upward or downward does not matter in the long rune because the difficulty adjustment will settle in to have a steady rate of blocks being found per 10 minutes.