{"type":"rich","version":"1.0","author_name":"npub1vtwj4n64rf9cf3mr8dqj84q58j06zre0r99vf50h49pwtdyudexstr2wkm","author_url":"https://nostr.ae/npub1vtwj4n64rf9cf3mr8dqj84q58j06zre0r99vf50h49pwtdyudexstr2wkm","provider_name":"njump","provider_url":"https://nostr.ae","html":"📅 Original date posted:2023-01-01\n🗒️ Summary of this message: A sudden halving of the Bitcoin system could lead to a significant amount of hashing power shutting down and fees increasing dramatically. However, the market may price in the possibility of a halving.\n📝 Original message:On 31 Dec 2022, at 10:28 am, Peter Todd via bitcoin-dev \u003cbitcoin-dev at lists.linuxfoundation.org\u003e wrote:\n\u003e \n\u003e\u003e This way:\n\u003e\u003e \n\u003e\u003e 1. system cannot be played\n\u003e\u003e 2. only in case of destructive halving: system waits for the recovery of network security\n\u003e \n\u003e The immediate danger we have with halvings is that in a competitive market,\n\u003e profit margins tend towards marginal costs - the cost to produce an additional\n\u003e unit of production - rather than total costs - the cost necessary to recover\n\u003e prior and future expenses. Since the halving is a sudden shock to the system,\n\u003e under the right conditions we could have a significant amount of hashing power\n\u003e just barely able to afford to hash prior to the halving, resulting in all that\n\u003e hashing power immediately having to shut down and fees increasing dramatically,\n\u003e and likely, chaotically.  Your proposal does not address that problem as it can\n\u003e only measure difficulty prior to the halving point.\n\n\n\u003e ... Since the halving is a sudden shock to the system\n\nIs it though? Since everyone knows of the possible outcomes, wouldn't a possible halving be priced in? \n\n\u003e resulting in all that hashing power immediately having to shut down and fees increasing dramatically\n\nWhich should cause that hashing power to come back because of this fee increases.\n\nAlfie\n\n--\nAlfie John\nhttps://www.alfie \u003chttps://www.alfie/\u003e.wtf\n-------------- next part --------------\nAn HTML attachment was scrubbed...\nURL: \u003chttp://lists.linuxfoundation.org/pipermail/bitcoin-dev/attachments/20230101/383bbd29/attachment.html\u003e"}