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From: Jeff Garzik <jgarzik@bitpay.com>
Date: Sat, 25 Oct 2014 14:31:55 -0400
Message-ID: <CAJHLa0M20QjBOwhOwJWJUcPBLzmaX1uuPy-6ytvJQWLZy68aeg@mail.gmail.com>
To: Alex Mizrahi <alex.mizrahi@gmail.com>
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Cc: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Subject: Re: [Bitcoin-development] death by halving
Precedence: list

It is an overly-simplistic miner model to assume altruism is
necessary.  The hashpower market is maturing in the direction of
financial instruments, where the owner of the hashpower is not
necessarily the one receiving income.  These are becoming tradeable
instruments, and derivatives and hedging are built on top of that.
Risk is hedged at each layer.  Market players also forge agreements
with miners, and receive -negative- value if hashpower is simply shut
down.

Simplistic models cannot predict what hashpower does in the face of
business-to-business medium- and long-term contracts.


On Sat, Oct 25, 2014 at 2:22 PM, Alex Mizrahi <alex.mizrahi@gmail.com> wrote:
>
>>
>> "Flag day" herd behavior like this is unlikely for well informed and
>> well prepared market participants.
>
>
> It is simply rational to turn your mining device off until difficulty
> adjusts.
> Keeping mining for 2+ weeks when it costs you money is an altruistic
> behavior, we shouldn't rely on this.
>
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-- 
Jeff Garzik
Bitcoin core developer and open source evangelist
BitPay, Inc.      https://bitpay.com/