Re: DECENTRALIZED crypto currency (including Bitcoin) is a delusion (any solutions?)
For anyone else who hasn't put their fingers in their ears, it should be obvious that there does exist an equilibrium in bitcoin mining, centered around the 25 BTC cost per block, because if there weren't one of two things would happen:
1. Cost of production exceeds 25 BTC, all miners go out of business since their costs exceed their profits
2. Cost of production is less than 25 BTC, the block interval shrinks to 0, and bitcoin inflates wildly out of control
You might argue that difficulty adjusts to compensate, but that can only happen if there can be an equilibrium. TPTB_need_war is confusing the fact that some miners are more profitable than others with the fact the overall the network is break even, since some miners are unprofitable.
1. Cost of production exceeds 25 BTC, all miners go out of business since their costs exceed their profits
2. Cost of production is less than 25 BTC, the block interval shrinks to 0, and bitcoin inflates wildly out of control
You might argue that difficulty adjusts to compensate, but that can only happen if there can be an equilibrium. TPTB_need_war is confusing the fact that some miners are more profitable than others with the fact the overall the network is break even, since some miners are unprofitable.
So the miner attacking the coin is going to have the capital cost which coincides with the equilibrium average.
As I wrote to you last time, there is no equilibrium (capital cost) in our consideration of the equation of the profitability of an attack and the incentives thereof.
Sigh.
I get frustrated because this post of yours ignores what I wrote in the prior post.
There is no such equilibrium because not all miners have the same costs for the same difficulty.
There is no such equilibrium because not all miners have the same costs for the same difficulty.
Don't feel bad, as it is a mistake so called "economists" make routinely, trying to model some phenomenon with statistics and totally failing to understand that the mean doesn't actually exist and instead the distribution is composed of diverse samples.