Dogecoin halving countdown
More coins means less value potentially for current coin holders. In fact NOT necessarily: We could call this seigniorage cash flow or seigniorage income which pays for the network to function. The problem however is that it is quite expensive. It is a very unusual way to pay for a payment network to function here by mining, more or less for profit, or maybe rather at a loss. However someone must pay the bill, there are here questions of altruism, [positive] externalities and hidden subsidies in the crypto currency economy.
An interesting question is: Will bitcoin hash rate be divided by two tomorrow?? This would be natural if miners were rational and miner profitability tended to some sort of equilibrium. We are holding our breath. It can followed in real time here. In the past the author of this blog has predicted that the hash rate of Dogecoin will be divided by 2 overnight, and this is exactly what happened, in fact it happened in the space of hours, actually it has happened MORE THAN ONCE , and exactly as predicted, in April and later, see Section Bitcoin and many other crypto currencies have been genetically programmed to self-destruct.
This is undeniable, see this paper. Bitcoin is the Microsoft of cryptocurrency. It enjoys a position of a natural monopoly with lots of positive externalities. It can cynically adopt them later when they mature. Your email address will not be published.
Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. This is undeniable, see this paper. Bitcoin is the Microsoft of cryptocurrency. It enjoys a position of a natural monopoly with lots of positive externalities. It can cynically adopt them later when they mature. Your email address will not be published.
Currently you have JavaScript disabled. In order to post comments, please make sure JavaScript and Cookies are enabled, and reload the page. Click here for instructions on how to enable JavaScript in your browser. In the short term it will probably have positive effects: The supply of freshly mined bitcoins will halve.
If the demand for these bitcoins remains constant, the price of bitcoin should increase!!! A system with such incredibly large subsidies as explained above poses serious questions about their sustainability. For example volatility implied by sudden shocks such as current block halving, while the halving could be much more gradual, see Section 13 of this paper. It is because of the risk [real or perceived] that people have to wait for many confirmations to accept payments in bitcoin.
Courtois for the Financial Times in ]. Decline in miner income means that miners will be tempted to increase the fees to restore the profitability of mining operations. The hash rate is expected to be divided by 2 overnight. It would be a good moment for bitcoin competitors to get some serious traction. To Decline or Not To Decline Bitcoin and many other crypto currencies have been genetically programmed to self-destruct. Leave a Reply Cancel reply Your email address will not be published.