Quote from: mestar on August 04, 2017, 06:41:22 AM

Quote from: Peter R on August 04, 2017, 12:17:37 AM

Quote from: marcus_of_augustus on August 03, 2017, 03:34:44 AM

Bcash cost of production (difficulty) is now being slashed by 20% per block for the next 6 blocks. Expect miners to follow cost of production slavishly. Forking guys have no idea what they have unleashed ... it will become apparent soon now.

Yes, the existence BCC will destabilize BCT mining.

Everyone knows that at equilibrium, if BCC has 1/10th the value of BTC, that the hash power mining BCC will be 1/10th that mining BTC.

What is less obvious what happens when the system is not in equilibrium. Imagine that the market reprices BCC 100% higher and BTC 10% lower. What is the expected distribution of hash power now assuming short-term profit-maximizing miners?

The answer is "most of it will be mining BCC." Because the difficulty adjusts only very slowly (every 2016 blocks) BCC becomes twice as profitable to mine as BTC. Hash-per-hash miners would earn double by mining BCC. This continues until the difficulty reset comes when BCC would go "limit up" (4X), when most miners would leave BCC back for BTC. BCC's difficulty would slowly ratchet back down due to its fast difficulty adjustment and the process would later repeat.

What this suggest is that at times when BCC is more profitable to mine and the hash rate migrates to BCC, the average block time for BTC will increase significantly and BTC's already slow and expensive transactions will become much more so.

Excellent analysis. You have just proven that with maximally exploitative mining strategy, you can't have two parallel coins that would work smoothly. Since 100% of miners would switch to the more profitable one, the other would be paused.

It would not be the slow adjusting difficulty, but the more frequently updated exchange prices that would govern this process.

WE ARE GOING TO THE MOON!!!