Bitcoin Q&A: Problem focusing on and the “loss of life spiral”




What's problem and the way is it adjusted? What if the problem couldn't be glad? Would sudden adjustments in mining hash energy kill Bitcoin? Will mining ever be thought-about a central financial institution duty or nationwide safety concern, as soon as the crypto financial system turns into massive sufficient?

These questions are from the MOOC 10.2 session, and the September and October Patreon Q&A classes, which came about on September 14th, September 29th, and October 27th 2018 respectively. If you need early-access to talks and an opportunity to take part within the month-to-month stay Q&As with Andreas, turn out to be a patron: https://www.patreon.com/aantonop

RELATED:
What's mining? – https://youtu.be/t4p4iMqmxbQ
Miners, swimming pools, and consensus – https://youtu.be/JHz7LM4ncLw
The mining course of – https://youtu.be/L4Xtau0YMJw
Nonces, mining, and quantum computing – https://youtu.be/d4xXJh677J0
What's problem focusing on? – https://youtu.be/h429LCTRmQw
Trustworthy nodes and consensus – https://youtu.be/KAhY2ymI-tg
Genesis block and coinbase transactions – https://youtu.be/strhfzJ56QE
Proof-of-work adjustments – https://youtu.be/AcaktuPdQrc
Why “power consumption” math sucks – https://youtu.be/uvFqEofdAZ0
SegWit and fork analysis – https://youtu.be/OorLoi01KEE
What's the function of nodes? – https://youtu.be/fNk7nYxTOyQ
Why working a node is necessary – https://youtu.be/oX0Yrv-6jVs

Andreas M. Antonopoulos is a technologist and serial entrepreneur who has turn out to be one of the well-known and revered figures in bitcoin.

Observe on Twitter: @aantonop https://twitter.com/aantonop
Web site: https://antonopoulos.com/

He's the creator of two books: “Mastering Bitcoin,” revealed by O’Reilly Media and regarded the perfect technical information to bitcoin; “The Web of Cash,” a e book about why bitcoin issues.

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MASTERING BITCOIN, 2nd Version: https://amzn.to/2xcdsY9

Translations of MASTERING BITCOIN: https://bitcoinbook.information/translations-of-mastering-bitcoin/

THE INTERNET OF MONEY, v1: https://amzn.to/2ykmXFs

THE INTERNET OF MONEY, v2: https://amzn.to/2IIG5BJ

Translations of THE INTERNET OF MONEY:
Spanish, ‘Web del Dinero' (v1) – https://amzn.to/2yoaTTq
French, ‘L'web de l'argent' (v1) – https://www.amazon.fr/Linternet-largent-Andreas-M-Antonopoulos/dp/2856083390
Russian, ‘Интернет денег' (v1) – https://www.olbuss.ru/catalog/ekonomika-i-biznes/korporativnye-finansy-bankovskoe-delo/internet-deneg
Vietnamese, ‘Web Của Tiền Tệ' (v1) – https://alphabooks.vn/khi-tien-len-mang

MASTERING ETHEREUM (This autumn): https://amzn.to/2xdxmlK

Music: “Unbounded” by Orfan (https://www.fb.com/Orfan/)
Outro Graphics: Phneep (http://www.phneep.com/)
Outro Artwork: Rock Barcellos (http://www.rockincomics.com.br/)

41 thoughts on “Bitcoin Q&A: Problem focusing on and the “loss of life spiral”

  1. Thanks for explaining the current down spiral to us Bitcoin miners. It makes sense to me now why the mining diff is decreasing also, compensating the lower prices to some extent, because pools return higher rewards per mined block atm. The current diff is 5,646,403,851,534 compared to 7,404,022,615,086 at the end of October when Bitcoin crashed from 6000 to 3000 Euros.

  2. Hey, regarding the death spiral, don't forget, miners don't get paid based on share of total global hashing power. The get paid based on how much hashing power they contribute. If mining power drops by half, blocks will be found half as often, but the miners still mining will get twice what they used to, since remaining blocks will still be shared among remaining miners.

  3. @anntonop Difficulty re-targeting looks at last 2016th block timestamp and then difference of that with current block timestamp will get into account, Not the other way around.

  4. on 12/03 and 12/04/2018 four whale wallets of 66k bitcoin, 2 whale wallets of 26k BTC and two of 30k BTC moved to 800 Segwit wallet addresses. A total of 378,000 bitcoin moved to 800 segwit vallets addresses. Who knows WHY?

  5. 9:25 what reason is there not to do difficulty retargeting every block? using a rolling 2w average or similar

    I don't see why you'd want to subject yourself to the current risk, even if you consider it a small risk.

  6. I'm very confused now… Isn't the difficulty retargeted every 2016 blocks, independent of the time it took to get there? Or recently it became time checked, independantly of blocks count? (Pretty sure it is not the case)

  7. At the 7 minute mark I believe you’re wrong about what you’re saying (assuming I understood what you meant). As a miner in the network it makes absolutely no difference for me if every other miner leaves the network and I’m left as the only one. Assuming a stable price per Bitcoin. The network will be a lot slower but I’ll be generating the same amount of Bitcoin as before and being equally as profitable. There’s no death spiral or anything there. Also as the blocks are slower, less transactions get confirmed and fees go higher so I actually end up making more money if other miners leave. Besides that, the sell pressure of mined bitcoins goes down so it can even have an effect to push price per Bitcoin up. So, overall, a sudden heavy decrease of hash rate in the network is actually beneficial for the remaining miners even before the next difficulty retargeting.

  8. Hey Andreas awesome vid!! Excited for the the new BTC changes coming. Have you looked into IP Exchange / IPSX? It's a peer to peer IP address rental / exchange. They are also getting into a lot of big data initiatives like storage etc. The business end of the platform is launched and they are working on the consumer to consumer end. They will also be establishing data center exchanges where they can rent a large volume of IP addresses. IP market is 80 billion dollars and grows 16% per year. IPSX is less than 1 million market cap.

  9. It's too late now but I wish the initial inflation rate was ~50% less. Also wish the difficulty adjustment was faster to preserve the coinbase reward since difficulty has historically increased more than decreased. Also wish the block size could automatically increase/decrease in relation to the mempool and fees similar to how the difficulty adjustment works to maintain consistency. Donating coins to the coinbase would be cool to.

  10. Isn't the difficulty adjustment every 2016 blocks? Thereby the timing is what sets the adjustment. I.E. 2016 blocks in 6 days instead of the expected 7.
    7/6 = difficulty adjustment. Diff. increased by 16.667%
    Of course the math probably uses seconds for the time. That's more cumbersome for a simple example.

  11. Wouldn't changing Targeting algorithm be difficult in the sense that if coin value was dropping faster than difficulty change, ( which is what most likely proceeded difficulty change in first place ), which would result in remaining miners having more coin volume as you describe, but at end of day end up with less value than before in total? If we examine the current difficulty drop, which is HUGE, it still isn't enough additional adjustment of coin volume to end up with more profits at end of the day. In other words, it could keep perpetuating and you would be guessing where to make change to Target Algo, one after the other.

  12. Hello, Great videos as well, I have a question and sorry for my english. The question is Can we mine a block who have 1 transaction ?… Some one got 12.5Btc rewards for mined a blok with only one transaction inside …. Block number : 552368 for exemple… in blockexplorer . com No need a video for that of course ^^ just simple reply below. Bye Alex

  13. Andreas- If Governments, state and or local were to "take over" mining, i would think consensus would be most likely a Hard-Fork and would do away with that. That would be centralizing in a very large way. That would go against everything that Bitcoin is? ( Get away from Government manipulation, etc ).
    A better solution is to have state/local governments help protect mining farms and to help them grow looking forward. A mutual cooperation between citizen mining operations and governments. Some kind of "Checks and Balances", or cooperative dependency.

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