5 ms·
Wait... isn't it worse than that? If I buy enough hashpower to have a measurable effect on the price, shouldn't the price be driven down, by the increased suppl
by srl 6y ago
Wait... isn't it worse than that? If I buy enough hashpower to have a measurable effect on the price, shouldn't the price be driven down, by the increased supply? Thus an ASIC farm is worse than a raspberry pi, at least as far as the effect on price goes.
(But, isn't there some majority attack? So maybe I want an ASIC farm as a way to protect my investment...)
- jes5199 6y agono, the mining difficulty self-adjusts, so the supply is only increased for a very brief time
- kcolford 6y agoNo because the supply is fixed in time
- garmaine 6y agoThe supply is fixed in number of blocks, not time.
- trixie_ 6y agoSupply of what? The supply increase of coins is constant regardless of the hashrate. This is exactly why there was no effect on bitcoin price when the reward rate halved. The value of the coin drives mining behavior, not the other way around.
- TylerE 6y agoActually, it doesn't. The difficulty adjusts every 2016 blocks, in theory every ~2 weeks, but if a large percentage of the hash power suddenly disappeared it could be much longer.
- jimmydorry 6y agoFor a temporary period of time, before it self-corrects back to ~2weeks. It's easy to leave this part out as it is an edge case that doesn't need the extra sentences qualifying the "normal case" that will be observed 99.99% of the time.