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Sorry but the complete opposite of everything you say is true. Hashrate follows price only. Very rarely will the hashrate effect price Miners have no say in w

Sorry but the complete opposite of everything you say is true. Hashrate follows price only. Very rarely will the hashrate effect price Miners have no say in what is a valid transaction. Mining system had only one purpose. To make sure miners have no say on what is a valid transaction Miners have no control over how new coins are made. They disempower themselves by competing for the protocol dictacted reward

cateye 8y ago
Don't want to go in a discussion and maybe you are completely right, but to my understanding: Miners collect the transactions on the network into large bundles called blocks. These blocks are strung together into one continuous, authoritative record called the block chain. Miners create blocks of transactions, and they have to create them in such a way that the rest of the network will accept them. One of the requirements is that the transactions in the block are all valid transactions. So yes, miners will validate transactions before they add the transaction to a block. If the miner cheats, and puts an invalid transaction into a block, then the rest of the network will reject that block, and the miner would have wasted their time doing the proof of work on that block. https://bitcoin.stackexchange.com/questions/148/what-exactly-is-mining https://bitcoin.stackexchange.com/questions/148/what-exactly...
- Ihfhcub 8y ago
  Yes you're right. But people's first analysis is to give too much weight to miners The protocol decides what is a valid transaction and the users enforce it. If miners decide what is valid the price of bitcoin goes to zero. They are a slaves to the protocol and that is the only reason that the mining mechanism works. Miners disempower themselves by competing
rcxdude 8y ago
Miners can refuse to process some transactions (this is somewhat intentional, in that higher fee transactions are supposed to get priority, but there is no mechanism which prevents them from simply excluding all transactions to/from a specific address from a block). If a large percentage of them do so it can have a significant impact on how long those transactions take (and the mining pools are very big and few in number).

cateye 8y ago

Don't want to go in a discussion and maybe you are completely right, but to my understanding: Miners collect the transactions on the network into large bundles called blocks. These blocks are strung together into one continuous, authoritative record called the block chain. Miners create blocks of transactions, and they have to create them in such a way that the rest of the network will accept them. One of the requirements is that the transactions in the block are all valid transactions. So yes, miners will validate transactions before they add the transaction to a block. If the miner cheats, and puts an invalid transaction into a block, then the rest of the network will reject that block, and the miner would have wasted their time doing the proof of work on that block. https://bitcoin.stackexchange.com/questions/148/what-exactly-is-mining https://bitcoin.stackexchange.com/questions/148/what-exactly...

Ihfhcub 8y ago
Yes you're right. But people's first analysis is to give too much weight to miners The protocol decides what is a valid transaction and the users enforce it. If miners decide what is valid the price of bitcoin goes to zero. They are a slaves to the protocol and that is the only reason that the mining mechanism works. Miners disempower themselves by competing

rcxdude 8y ago

Miners can refuse to process some transactions (this is somewhat intentional, in that higher fee transactions are supposed to get priority, but there is no mechanism which prevents them from simply excluding all transactions to/from a specific address from a block). If a large percentage of them do so it can have a significant impact on how long those transactions take (and the mining pools are very big and few in number).