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I don’t see how hashpower consolidation is a consequence of anything other than the usual economies of scale that lead to consolidation in different businesses.

I don’t see how hashpower consolidation is a consequence of anything other than the usual economies of scale that lead to consolidation in different businesses. A large miner can negotiate better prices for hardware and electricity than a smaller one.

FlacoJones 5y ago
That's exactly it - hashpower consolidation does result from economies of scale. At least looking at ASIC-resistant mining algos... it would be a hopeful future if we could get protocol-level compute and storage sharing to distributed mining pools, like https://www.nicehash.com/ https://www.nicehash.com/ Until contributing your unused compute and storage is as easy as clicking a toggle, the economies of scale will prevail. I think crypto + ASIC resistance + seamless edge computing = the original dream of the Internet
- FlacoJones 5y ago
  TL;DR Maybe regulation of massive mining cartels can have positive externalities by making distributed mining pools more profitable