[Bitcoin-ml] Transaction mining priorities.
tomz at freedommail.ch
Tue Sep 19 20:38:12 UTC 2017
On Tuesday, 19 September 2017 21:51:09 CEST Andrew Johnson via bitcoin-ml
> The only reason to mine is to make money,
While not wrong, its also not correct.
And I do agree with Edward on the general message here.
Blindly stating that for miners the fees are the most important is utterly
missing reality. Missing basic economics.
The music industry is making the same mistake, they too say that people that
copy the music without paying are actually stealing. Because, they must
reason, we *could have* received money from them instead.
This is not how it works. Just because you can ask for a fee doesn’t mean
its the most profitable thing to do.
The basic fact here is that the actual cost of mining a 1MB or a 20MB block
has no effective difference for miners cost structure.
Charging everyone fees will have the natural effect of;
* killing usecases.
* stiffling growth
* having a competing chain (with different POW hardware) that may be better.
The miner is the ultimate investor in the chain. They need to see their
investment turned into coins in a short time before the hardware becomes
They can’t expect to sit on those coins for the next 10 years hoping they
get more profitable.
So now we look at successful growth. Check the website from y-combinator and
similar resources, they explain how a small company can grow profitable.
The bottom line is always growing your customer base. These customers don’t
even have to be paying customers. The important part is that they are *your*
customers. And network effects makes that an exponential growth.
So far Bitcoin (Cash) has a tiny customer base, so growth is where the
biggest potential is.
Sorry for not mentioning this in the original post, sometimes I forget the
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