Post
Topic
Board Securities
Re: [Havelock] Bitcoin Difficulty Derivative (BDD)
by
Draino
on 20/07/2014, 21:13:37 UTC
Thanks for trying to answer, but it still only leaves me with more questions. My original question (rephrased): Are we going to have to wait until a new 200 days begins (brand new) then to get paid dividends from B-Sell? I understand from what I read of the difficulty scenario that there needs to be an 11.5% increase....but that does not provide an answer as to what is needed to get there. Yes there needs to be an increase, I think everyone can see that....BUT HOW? What is needed? What can be done? Are you not mining bitcoin 24/7...so why is there no 11.5% increase?  Huh

roughly speaking, at the difficulty increase (determined by bitcoin protocol, http://bitcoinclock.com when the minute hand reaches 12), if there are more than 200 days worth of mining payouts at 5Gh/s per mine share, then the extra is paid out to sell.  for the current difficulty, it would take a ~11.5% difficulty increase to cause mining payouts to be small enough for the reserve to exceed 200 days.

no mining is actually being done by the fund, and the fund has no effect on the hashrate of the network.

(unless i'm doing it wrong)