Author: Chaofan Li 2018-01-23 05:47:27
Published on: 2018-01-23T05:47:27+00:00
The conversation is about the possibility of eliminating human perception of difference in money. It is suggested that if wallets and exchanges only show the total amount of bitcoin, instead of separating it into different types (btc.0 and btc.1), there would be no human perception difference. Additionally, one valid address is automatically valid on the other chain which means that money can be sent through any one chain as long as the private key is available. Therefore, there would be no difference between the number of merchants as their addresses are valid on both chains. It is argued that mining difficulty controls the block period, not miner return on capital. The conflation of difficulty with profitability is highlighted as being erroneous since profitability is controlled by competition. The idea of equilibrium is mentioned, however, it is stated that even if we could start at a point of perfect equality, the smallest change in the number of merchants or human perception of the money would lead to the elimination of one money in favor of the other. One money is inherently better than two due to the exchange cost between them. It is believed that in the absence of exchange controls, the better money gets used, and in this case, it can simply be the result of a slightly larger network (or perception of it).
Updated on: 2023-06-13T00:04:09.750919+00:00