[Cryptography] Bitcoin compute power (was Re: Aggregate signatures)

[Lodewijk andré de la porte]

On Jun 11, 2014 4:49 PM, "Phillip Hallam-Baker" <phill at hallambaker.com>
wrote:
>
>
> >> year.  People keep doing it because they hope the coins they're
> >> hoarding will increase in value enough to be retroactively profitable.

So far this has always happened. Better to just buy coins though (bigger
margin).

> If someone then comes in with a new $1 million rig that produces twice
> the coins for the same electricity it is going to look like a great
> investment.
>
> But as soon as that rig is in service (and everyone else upgrades
> likewise) the difficulty goes up, lets say it doubles.

There's a lot of flexible mining too (? Maybe not) but the intrinsic
(security) of bitcoin increases like this. Judging miners is one thing,
maybe they're all idiots. But for Bitcoin it is /great/. It means Bitcoin
is more secure than it should be (economically).
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