Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion

I thought this was supposed to be P2P trustless electronic cash. Not connect to some hub and pay additional fees. However, Mr Wright seems to think that if I run a node, and not mining, that I'm just a fat wallet wasting network resources. Such plebs as us should just connect via SPV and pay fees. Wow, Mr Wright, that's really going to help the unbanked of Africa. Roll Eyes

I'd expect there will always be some form or "free service" available (both for Merkle-branch proofs and for transaction confirmations). But I suspect timely-confirmations will cost around a penny and that timely SPV proofs will cost several-orders of magnitudes less.

You have too much faith in many of these pool operators, who would be running the mining and the nodes. You really think they are going to charge pennies when they can command dollars?

If they were making absurd profits by overcharging their customers, then new businesses would start up additional SPV-servicing nodes and charge slightly-lower prices to win over customers and claim some of that juicy profit. Eventually, a market forms where the marginal return on investment for new SPV-servicing nodes is close to the risk-free interest rate in the economy.

This is microeconomics 101.

And what is to prevent the mining nodes, which are also the SPV servicing nodes, from simply ignoring the new upstart's node or charge them a fee? After all, the tx must be relayed to a mining node, to be included in a block. You can start up your own mining operation, but it will face stiff competition from a certain company that already controls 70% of the ASIC manufacturing. You could then decide that you need to make your own Asic chip. Now, for your start up that can reasonably compete, you are talking quite the pretty penny just to setup. You really think they are going to be charging pennies? Cheesy