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From: Eric Voskuil <eric@voskuil.org>
In-Reply-To: <091F89E0-FBA0-42F9-9166-CF121A84319F@friedenbach.org>
Date: Mon, 22 Jan 2018 14:52:23 -0800
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To: Mark Friedenbach <mark@friedenbach.org>,
	Bitcoin Protocol Discussion <bitcoin-dev@lists.linuxfoundation.org>
Cc: Ilan Oh <ilansky.sharkson@gmail.com>
Subject: Re: [bitcoin-dev] Blockchain Voluntary Fork (Split) Proposal
	(Chaofan Li)
Precedence: list

This is true but confuses people because obviously miners must commit capita=
l to mining before any block space can exist to have value. The reason for t=
he misunderstanding is that miners don=E2=80=99t simply respond, they antici=
pate. All production, and therefore capital investment, is the result of ant=
icipation of future returns, not an attempt to chase past returns.

The first miner anticipated that the then-worthless =E2=80=9Ctokens=E2=80=9D=
 he was mining would have a future value. Turns out he was right. Others hav=
e been wrong, which is the nature of betting on future prices. But if nobody=
 does it, there are no products.

e

> On Jan 22, 2018, at 11:59, Mark Friedenbach via bitcoin-dev <bitcoin-dev@l=
ists.linuxfoundation.org> wrote:
>=20
>=20
>> On Jan 22, 2018, at 11:01 AM, Ilan Oh via bitcoin-dev <bitcoin-dev@lists.=
linuxfoundation.org> wrote:
>>=20
>> The chain with the most mining power will tend to have more value.
>=20
> I believe you have the causality on that backwards. The tokens which are w=
orth more value will attract more mining hash rate. Miners respond to cash-o=
ut value, they don=E2=80=99t set it.
>=20
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