Ninjastic
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Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
inca
on 04/05/2015, 08:42:22 UTC
Quote from: ErisDiscordia on May 04, 2015, 08:10:00 AM
Quote from: JorgeStolfi on May 04, 2015, 03:24:25 AM
Quote from: shmadz on May 04, 2015, 12:43:32 AM
Quote from: JorgeStolfi on May 03, 2015, 10:49:47 PM
Tim Swanson (who understands bitcoin's economy much better than most bitcoin gurus) is looking at the miners as an entity that performs a service to the "bitcoin system" (validating and securing transactions) in return for a payment (the block rewards and transaction fees).
That's where you and Tim are mistaken prof. You are completely ignoring the main function of the block reward, which is to distribute the tokens.

That may be one intended function of the block reward; but now it is effectively the main payment that miners get for their work.  (It is far from ideal for both purposes, though.  The 25 BTC reward would be adequate if the price was in the single-digit range; which would be the case, if Satoshi had not been brainwashed by his libertarian friends with that Austrian Economics fiction about deflationary money...)

oh cool, you know the future with perfect certainty, must be nice.

well, no harm then in letting us crazy libtard anarchist criminals try it out then, right? It will just fail instantly and you and your statist brethren will have definite proof that it can't work and you'll get to suck big brothers dick in peace forever and ever Smiley

Jorge deliberately chooses to ignore the role of a bitcoin miner. That role is to distribute new coins and maintain network security. Moaning that miners get paid with the block reward and that this somehow makes bitcoin inefficient is stupid. It is a design choice. The block reward is falling exponentially and the coin inflation he is so concerned new users have to pay for will be irrelevant by 2020.