Author: Peter Todd 2013-11-15 11:12:04
Published on: 2013-11-15T11:12:04+00:00
In an email exchange, Michael Gronager and Peter Todd discuss the mining industry and the impact of pools on earnings, with Gronager suggesting that small miners are better off in a pool, but there is a threshold above which it would be more profitable to mine alone. However, Todd argues that larger Q gives higher returns, and that pools have economies of scale due to their infrastructure and nodes. Gronager also suggests that Bitcoin rate could be affected by pool size, with a sharp dip at 40% hardware controlled by one entity. The two also discuss defining f(L) as a way to model supply and demand and reduce centralization pressure. Todd agrees that setting f(L) = c results in more reasonable equations.
Updated on: 2023-06-07T20:09:49.026562+00:00