Author: Ferdinando M. Ametrano 2014-10-28 21:44:50
Published on: 2014-10-28T21:44:50+00:00
In an email conversation, Neil pointed out that a halving in Bitcoin's price is economically similar to a halving of the block reward. This is because as fees take up more of the pie, there is less room for mining profits. He also noted that the price of Bitcoin had already halved from July to October 2014, but difficulty had not yet fallen. Neil expressed concern about the lack of consideration for basic economic principles in Bitcoin mining. He argued that the incentive structure had already led to an oligopoly and could easily become a monopoly in the near future if left unchecked.
Updated on: 2023-06-09T03:43:59.188371+00:00