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With unused mining hardware reserves they could smash outsiders by ramping up the hashrate. Cartels usually don't last forever, but they can last for a while.
by VMG 9y ago
With unused mining hardware reserves they could smash outsiders by ramping up the hashrate.
Cartels usually don't last forever, but they can last for a while. In the case of bitcoin, it could reduce total energy consumption.
- ZenoArrow 9y agoIn one comment you're suggesting a cartel should keep the hashing rate low, in another comment you're suggesting the same cartel should increase the hashing rate to keep out the competition. What are you really proposing? Keeping it low until any form of competition shows up? That competition is always likely to be a factor for as long as Bitcoin mining is popular.
- VMG 9y ago> Keeping it low until any form of competition shows up? Exactly. This is similar to how price dumping works: https://en.wikipedia.org/wiki/Dumping_(pricing_policy) https://en.wikipedia.org/wiki/Dumping_(pricing_policy)
- ZenoArrow 9y agoYou're not listening. I'm suggesting it'll never work for Bitcoin as the available competition is ever present. A cartel gains nothing by mining at a slower rate.