Quote from: Etlase2 on April 22, 2013, 05:52:07 PM

Quote from: don giovanni on April 22, 2013, 04:10:13 PM

Your concerns seem to be more geared towards dumping. This is only an issue in the real world when someone with a massive supply can continually dump to create a market dependence on them, but since anyone can be a supplier at any time in bitcoin this isnt an issue.

Are we talking about the same bitcoin where greater than 50% of the currency to ever be created is in the hands of <100k people? Where 20% of it is probably in the hands of a few dozen? I don't know how you can possibly make the argument that bitcoin mining is somehow a solution to demand when it is, by design, a choke point of the currency. My concerns are not "more geared towards dumping", they are geared towards providing a stable currency base that is difficult to manipulate by those who mine, those who have coins, or anyone else. This is without resorting to some kind of centralized solution or being tied to hard formulas that will not be able to adapt to reality.

This chokepoint you speak of was the result of a fixed block reward coupled with a moving difficulty. In the early days the difficulty was so low anyone could earn the block reward easily, this being the same block reward that as of last winter took incredible amount of investment to earn. Had the block reward been pegged to the difficulty then it would not have cost its users any more to win the same amount of currency than had they been the first and only miner.

This is why most of the currency is in the hands of so few people, when you have a pit full of gold and no one else to compete with, then winner takes all. Widen the pit with the influx of new miners and now everyone will have an equal take no matter how many join.