[ExI] [mta] Re: "Crypto Coin Law" vs "Law of the Crypto Coin"?

[Mirco Romanato]

Il 20/08/2013 21:45, Brent Allsop ha scritto:
> 
> Guys,
> 
> In my mind, you guys are wasting your time on this.  Can you show me
> convincing quantitative evidence that the amount of coins being mined,
> vs what everyone expected, is in any way significant to any Bitcoin
> pricing?  Even if things don't adjust very fast, when things do adjust,
> they will catch up, making a huge adjustment.  In other words, these
> small variations don't really have any significance, do they?

Yes and not.

An higher inflation rate now imply a lower inflation rate later.

The problems could be a few, anyway:

1) As the network grow in uses and users the fees should become a
greater share of the income of miners. But, if more blocks are mined
now, less blocks would be mined later. This could cause a sudden
reduction of income for miners (probably) forcing some to quit mining
because the fees are not enough to compensate the reduction of mined coins.

2) a sudden reduction of mining power would cause the medium time
between block discovery to raise significantly. Maybe from 10 minutes to
15 or 20 minutes. Would not be good for the network efficiency.

So, there could be a few problems, but I'm not too worried about.

Mirco