Ninjastic
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Board Bitcoin Discussion
Re: Annual 10% bitcoin dividends if mining were Proof-of-Stake
by
SlipperySlope
on 24/04/2014, 15:49:43 UTC
Quote from: cbeast on April 24, 2014, 03:42:18 PM
Quote from: SlipperySlope on April 24, 2014, 03:30:54 PM

Here is infamous mining equipment manufacturer kncminer. This is a single miner in the Unknown pie slice chart whose ambition is to compete with customers still waiting for paid-for equipment. Proof-of-Work manifestly encourages bad behavior.

It also encourages competition. This sort of bad behavior only exists in a monopoly and may be actionable. Certainly such bad behavior will not be forgotten, excused, nor forgiven.

Here is some competition - the 5GH/s bitcoin miner from Butterfly Labs.



According to the mining profitability calculator at https://tradeblock.com/mining/ and assuming you get electric power at only $0.03 per KwH, then every month you mine with this ASIC you lose money. They are still for sale. ASICs are designed for obsolescence. And the established industry business model is pre-order which invites fraud.