We are still in the struggle of two vision for the Bitcoin system:
-> One controlled by every node operator and highly decentralized. (nobody alone controls)
-> One controlled by a few very highly capitalized entity node operators and highly centralized.
(a committee controls)
What 2011 was called “fee death spiral problem” is nowadays renamed by “Bitcoin Security Budget”
The halving is the worse horror for highly indebted capitalized mining entities.
The difficulty adjustment the worse obstacle.
“Any […] miner intends to maximize profit. His decision on what transactions to include doesn’t create a big change in the height of fees. Thus, the miner will include all transactions that pay any fee, even very low fees, to have maximum profit.” Vandroiy
“This results in the price for transactions dropping. In turn, those miners who already were hardly profitable have their earnings further reduced and quit.” Vandroiy
That is “free competition”. And is very welcome to keep mining entities decentralized around the world.
A capitalist investing in mining activities with his/her own property has nothing to fear.
ChrisMartl / Chris Ⓜ️Ⓜ️🅱️ Austrian Bitcoiner
npub12d…g2t6a
2023-08-18 13:13:31
Author Public Key
npub12dqaahgwa5zd90x8tkw93un5ef6pv9wqcws2x0ksc6q379u0k9ws7g2t6aPublished at
2023-08-18 13:13:31Event JSON
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"pubkey": "5341dedd0eed04d2bcc75d9c58f274ca741615c0c3a0a33ed0c6811f178fb15d",
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"kind": 1,
"tags": [],
"content": "We are still in the struggle of two vision for the Bitcoin system:\n\n-\u003e One controlled by every node operator and highly decentralized. (nobody alone controls)\n\n-\u003e One controlled by a few very highly capitalized entity node operators and highly centralized.\n(a committee controls)\n\nWhat 2011 was called “fee death spiral problem” is nowadays renamed by “Bitcoin Security Budget”\n\nThe halving is the worse horror for highly indebted capitalized mining entities.\n\nThe difficulty adjustment the worse obstacle.\n\n“Any […] miner intends to maximize profit. His decision on what transactions to include doesn’t create a big change in the height of fees. Thus, the miner will include all transactions that pay any fee, even very low fees, to have maximum profit.” Vandroiy\n\n“This results in the price for transactions dropping. In turn, those miners who already were hardly profitable have their earnings further reduced and quit.” Vandroiy\n\nThat is “free competition”. And is very welcome to keep mining entities decentralized around the world.\nA capitalist investing in mining activities with his/her own property has nothing to fear.",
"sig": "9c1c80d0ea1153bede8f02a002dee75a14a28141b0981340e70e4ea949e89240f8ce326d280363d95bdf34018960e4db43b8584a5ff1e6c71b6dec5c22e966d7"
}