It's not a counter thought. It's a statement of the bleedin' obvious. However, the difficulty adjustment keeps prices and costs in line with each other to discourage miners from dropping out. Assuming this holds, breakeven cost can be used to predict price.
-
-
My issue was with Mow (and others) saying it was the labour theory of value while completely ignoring the fact that the difficulty adjustment influences the price by adjusting the mining cost - which is what Satoshi says in that quote.
1 reply 0 retweets 1 like -
It's a bit rich to claim that the price is determined entirely by subjective valuation when there is a built-in price control mechanism that works by adjusting production cost.
1 reply 0 retweets 0 likes -
Replying to @Frances_Coppola @Excellion
Will 🗣️ 🌐 Retweeted Will 🗣️ 🌐
Agree. That built in mechanism you reference is father to the strange loops pervasive in this model.https://twitter.com/FluidFluxation/status/996310464945672192?s=19 …
Will 🗣️ 🌐 added,
1 reply 0 retweets 0 likes -
Replying to @FluidFluxation @Excellion
If Bitcoin really does trade like a commodity as Satoshi said, the price adjustment mechanism can't be sustainable long-term unless users are prepared to pay miners what amounts to a subsidy to keep them producing. Farm-gate price support in the crypto world. Who'd have thought.
1 reply 0 retweets 0 likes -
Replying to @Frances_Coppola @Excellion
Token emission is a protocol to facilitate more ideal bootstrapping incentives to be organically hyper-competitive game/information theoretically. Since day 0 the network has been built to incentivize fee markets. See image 2. Source: Original Whitepaper.pic.twitter.com/BNpRuVGSqM
2 replies 0 retweets 0 likes -
Replying to @FluidFluxation @Excellion
the real problems start when the 21m limit is reached. After that, transaction fees will have to rise ever higher to keep miners honest.
1 reply 0 retweets 0 likes -
Replying to @Frances_Coppola @Excellion
Those problems are already being addressed, and have been of focus since early days. Spam prevention metrics were rooted in the same concern, protecting value/scarcity/surprise of contents tx info of blocks. Token emission expires mid 2100's. We will have consensus by 2030.
2 replies 0 retweets 0 likes -
Replying to @FluidFluxation @Excellion
AFAICS they are mainly being addressed by looking for alternatives to PoW.
1 reply 0 retweets 0 likes
Nah thats just losers/quitters/scammers. The real debate is over the value of address space protocols and tx throughput on bitcoin. Camp largely split over lightning/BCH today. Trival tribal factions that will dissolve/degrade on next innovation/bull cycle.
-
-
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.