rich1.0npub1vtwj4n64rf9cf3mr8dqj84q58j06zre0r99vf50h49pwtdyudexstr2wkmhttps://nostr.ae/npub1vtwj4n64rf9cf3mr8dqj84q58j06zre0r99vf50h49pwtdyudexstr2wkmnjumphttps://nostr.ae📅 Original date posted:2023-01-01 🗒️ 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. 📝 Original message:On 31 Dec 2022, at 10:28 am, Peter Todd via bitcoin-dev <bitcoin-dev at lists.linuxfoundation.org> wrote: > >> This way: >> >> 1. system cannot be played >> 2. only in case of destructive halving: system waits for the recovery of network security > > The immediate danger we have with halvings is that in a competitive market, > profit margins tend towards marginal costs - the cost to produce an additional > unit of production - rather than total costs - the cost necessary to recover > prior and future expenses. Since the halving is a sudden shock to the system, > under the right conditions we could have a significant amount of hashing power > just barely able to afford to hash prior to the halving, resulting in all that > hashing power immediately having to shut down and fees increasing dramatically, > and likely, chaotically. Your proposal does not address that problem as it can > only measure difficulty prior to the halving point. > ... Since the halving is a sudden shock to the system Is it though? Since everyone knows of the possible outcomes, wouldn't a possible halving be priced in? > resulting in all that hashing power immediately having to shut down and fees increasing dramatically Which should cause that hashing power to come back because of this fee increases. Alfie -- Alfie John https://www.alfie <https://www.alfie/>.wtf -------------- next part -------------- An HTML attachment was scrubbed... URL: <http://lists.linuxfoundation.org/pipermail/bitcoin-dev/attachments/20230101/383bbd29/attachment.html>