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My thoughts on how the Bitcoin fork will play out. by adambalm

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· @adambalm · (edited)
$2.46
My thoughts on how the Bitcoin fork will play out.
I think it will work out just fine. Most of the people who want Segregated Witness want it because they believe that it will make Bitcoin usable as a payment system. Bitcoin is not ready to be used as a payment system just yet as it has the ability to loose $200 dollars in value in under 10 min. The truth is the Lighting network is a year more likely 2 at being ready to be implemented. You can go and play with it on testnet and you can see that it is nowhere near ready. This makes it not a good solution to the block size problem for a few reasons but the main one is that it will be a year at best before it starts to help the current problem. 

What else is happening is that people are starting to look outside r/bitcoin and Bitcointalk for there information. When they are getting there info from non censored sources it's easy to see who is trying to centralize BTC and who is wanting to use a consensus system for Bitcoin's development path. The Blockstream people are well funded and are willing to use that money to pay shills or to drive the price around on sites like Bitfinex that are offering voting on the fork happening or not. 

BU will have at least 75% of the hashing power when they enable the fork, my guess is that they will do this the day after the difficulty changes. When 75% of the hashing power is removed from Corecoin and the difficulty remains the same it will bring the Corecoin network to a standstill. Remember the difficulty does not change every 2 weeks it's done every 2000 blocks and if it is taking them 3 - 4 times as long to find blocks due to the 75% loss it should take them at least 8 weeks to get a difficulty change. The next thing is that the miners that are mining Corecoin will be finding 25% of the block rewards that they would mining Bitcoin. During this 8 weeks the remaining Corecoin miners will have to leave due to the fact they have expenses to pay for and can't afford to loose that kind of Bitcoin. This will also make the Corecoin network slower and slower until it is made obsolete. What happened with the Ethereum fork is different because it can be mined by everyone and there dog, when BTC mining is mostly done by a small group of people, for the moment.

This site is a calculator that shows how long it would take to find a block if X amount of hash power was removed from a minority chain. https://hardfork.cafe/

https://i.supload.com/HkxQs228g.png
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vote details (50)
@ender · (edited)
Wouldn't it be easier to find blocks if there was less competition because hashing power left? Seems like the biggest issue would be slower blocks and replay attacks since the other chain would be moving fastet
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@adambalm · (edited)
If it takes you 20 Petahash to find a block every 10 minutes and you remove 15 Petahash it will take you 40 minutes to find a block until the difficulty changes. My guess is that after the 2 months the difficulty will swing the other way an they will have 5-7 min block times. The question is do the miners have the extra money sitting around to mine for 2 months while only getting 25% of the payout they should be getting. Next the value of Corecoin at this point should be very low as most Bitcoin users do not care about the blocksize debate. What they do care about is is paying the lowest fees they can, store of value, and fast transactions. These 40 minute block times should last about 8 weeks if they can maintain 25% hashing power. Slower blocks and replay attacks would only happen to people trying to maintain a minority chain. You forgot also the minority chain would be 75% less secure. Forget the politics for just and second and consider, as a miner what chain would you mine? As a Bitcoin holder using it as a store of value or for commerce, what chain would you rather have your coins on.
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@adambalm · (edited)
I just did the math real quick and Bitfury has 12% of the hash power today. This gets them about 216 Bitcoins a day or $216,000 USD at current prices. 25% of 216 is 43 Corecoins a day or $43,000 USD a day while they are still incurring the same operating costs for 2 months. At the end of the day the Corecoins they are mining could end up being worthless, where Bitcoin will just keep doing it's thing.
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@ender ·
But wouldn't they get more coins if there was less competition? 4 x as more to be exact? I assume with that has lh they get 12 percent of coins but if you lost hat much hash wouldn't they get 48 percent of coins?
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