Received-SPF: pass (sog-mx-3.v43.ch3.sourceforge.com: domain of gmail.com
	designates 209.85.214.181 as permitted sender)
	client-ip=209.85.214.181; envelope-from=alex.mizrahi@gmail.com;
	helo=mail-ob0-f181.google.com; 
MIME-Version: 1.0
In-Reply-To: <CAJHLa0M20QjBOwhOwJWJUcPBLzmaX1uuPy-6ytvJQWLZy68aeg@mail.gmail.com>
References: <CAE28kUS-uDbd_Br3H5BxwRm1PZFpOwLhcyyZT9b1_VfRaBC9jw@mail.gmail.com>
	<CAJHLa0PeB-DMs2zo680FRvaejV-K97k2g0Ti9pPdaNeH+gYmog@mail.gmail.com>
	<CAE28kUSPb3ZC1nJyX7H__7cAgXvOvPbZ+Tub+htGd5+tujZndg@mail.gmail.com>
	<CAJHLa0M20QjBOwhOwJWJUcPBLzmaX1uuPy-6ytvJQWLZy68aeg@mail.gmail.com>
Date: Sat, 25 Oct 2014 22:08:05 +0300
Message-ID: <CAE28kUS7cr3i-pSew6Y+xvfLEY5D1mi4oHU-GXv+jEf-i_8sVQ@mail.gmail.com>
From: Alex Mizrahi <alex.mizrahi@gmail.com>
To: Bitcoin Dev <bitcoin-development@lists.sourceforge.net>
Content-Type: multipart/alternative; boundary=089e011765cd69b3b9050644040e
Subject: Re: [Bitcoin-development] death by halving
Precedence: list

--089e011765cd69b3b9050644040e
Content-Type: text/plain; charset=UTF-8

> The hashpower market is maturing in the direction of
> financial instruments, where the owner of the hashpower is not
> necessarily the one receiving income.  These are becoming tradeable

instruments,


Meni Rosenfeld issued tradeable mining bonds back in 2012:

https://bitcointalk.org/index.php?topic=65569.0

So this is hardly new stuff. But it definitely won't help.
The contract specifies how many bitcoins bondholder would get depending on
difficulty and other factors.
But, usually, bondholder doesn't care (and cannot check) where these
bitcoins come from.

Thus the owner of the mining equipment can temporarily turn off that
equipment off, and instead buy them on the market, as he needs to spend
less money than he would spend on electricity. Then he can pocket the
difference.


> Simplistic models cannot predict what hashpower does in the face of
> business-to-business medium- and long-term contracts.
>

Ah, yes, let's forget game theory, business people know it better!

--089e011765cd69b3b9050644040e
Content-Type: text/html; charset=UTF-8
Content-Transfer-Encoding: quoted-printable

<div dir=3D"ltr"><div class=3D"gmail_extra"><div class=3D"gmail_quote"><div=
>=C2=A0</div><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px =
0.8ex;border-left-width:1px;border-left-color:rgb(204,204,204);border-left-=
style:solid;padding-left:1ex">The hashpower market is maturing in the direc=
tion of<br>
financial instruments, where the owner of the hashpower is not<br>
necessarily the one receiving income.=C2=A0 These are becoming tradeable</b=
lockquote><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px 0.8=
ex;border-left-width:1px;border-left-color:rgb(204,204,204);border-left-sty=
le:solid;padding-left:1ex">
instruments,</blockquote><div><br></div><div>Meni Rosenfeld issued tradeabl=
e mining bonds back in 2012:</div><div><br></div><div><a href=3D"https://bi=
tcointalk.org/index.php?topic=3D65569.0">https://bitcointalk.org/index.php?=
topic=3D65569.0</a><br></div><div><br></div><div>So this is hardly new stuf=
f. But it definitely won&#39;t help.</div><div>The contract specifies how m=
any bitcoins bondholder would get depending on difficulty and other factors=
.</div><div>But, usually, bondholder doesn&#39;t care (and cannot check) wh=
ere these bitcoins come from.</div><div><br></div><div>Thus the owner of th=
e mining equipment can temporarily turn off that equipment off, and instead=
 buy them on the market, as he needs to spend less money than he would spen=
d on electricity. Then he can pocket the difference.</div><div>=C2=A0<br></=
div><blockquote class=3D"gmail_quote" style=3D"margin:0px 0px 0px 0.8ex;bor=
der-left-width:1px;border-left-color:rgb(204,204,204);border-left-style:sol=
id;padding-left:1ex">Simplistic models cannot predict what hashpower does i=
n the face of<br>
business-to-business medium- and long-term contracts.<br></blockquote><div>=
<br></div><div>Ah, yes, let&#39;s forget game theory, business people know =
it better!</div></div></div></div>

--089e011765cd69b3b9050644040e--