The Bitcoin Lottery

Re:The Bitcoin Lottery by ivankirigin on Wednesday May 18, 2011 @12:09PM (#2560601)

a proper analysis might take into account the desirability of converting to estimate the number of miners which directly affects the cost of conversion. My guess is that as the number of bitcoins created starts to get rate limited, it will be right right below profitability over the long term because many miners can steal energy (e.g. a personal box at work) to warp the market.

[ Parent | on HN ]

Re:The Bitcoin Lottery by Tichy on Wednesday May 18, 2011 @01:09PM (#2560816)

I must admit I don't understand your first sentence. But it is true that many people can steal energy (student halls seem to be popular) and thus have an advantage in mining.

When I started my analysis was essentially "if I am lucky I can get back my investment and get a new gaming PC that pays for itself".

[ Parent | on HN ]

Re:The Bitcoin Lottery by ivankirigin on Wednesday May 18, 2011 @02:30PM (#2561124)

My first sentence just meant that you might model M, the number of miners, as a function of the profitability, P. P is a function of M.

There is a constant for M that is independent of P, M_power_leech.

[ Parent | on HN ]

Re:The Bitcoin Lottery by Tichy on Wednesday May 18, 2011 @06:53PM (#2562172)

True, but that only means that my "people will quit and it will become profitable again" scenario might not happen. I think every miner assumes that the days of profitability are limited.

[ Parent | on HN ]