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So is your argument that the profit from mining PoW currencies is actually sub-linear with the initial investment because it's more expensive per unit to get la
by shawnz 5y ago
So is your argument that the profit from mining PoW currencies is actually sub-linear with the initial investment because it's more expensive per unit to get larger quantities of hardware and electricity, and so that counteracts the gain that early adopters have had?
That doesn't seem right to me, economics of scale suggest it should be cheaper per unit to get larger quantities (even if there are additional difficulties doing so at a big scale).
- atweiden 5y agoThe difference with PoW mining is it involves more than just clicking a button. Conversely, with PoS, people — and particularly insiders who are in on the ICO, pre-ICO or premine — can click a button and earn X% per annum in perpetuity. Which they do. Bitcoin has many problems, it just doesn’t have this particular one.