billyjoeallen
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billyjoeallen
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February 19, 2016, 03:14:09 AM


folks? still that block-discussion going on?

isnt it obv meanwhile? classic wont succeed, miners are hesitant to switch.

but core will have to accept a 2MB hardfork in 2017. miners want that.

so case closed. nothing to see here anymore.

Core hasn't accepted that yet. When and if they do, it's off to the races, but not before then.  You need to understand their objection. What if we upgrade to 2MB forks and nothing bad happens? It means that we could upgrade to 4 or 8 or 20. Then the Lightning Network time frame to even be needed or viable gets pushed back possibly indefinitely, and Blockstream gets no new VC money. 

They think this is is a fight for survival for them. They will go down if they lose and we don't yet know if they are willing to take us all down with them by resisting the majority and crashing the market. That's the 65 million dollar question. Will Core remain the reference client and bankrupt their own company or will they hold us all hostage and force us to fight it out with the inevitable market crash that would bring? 

I believe people usually do what's in their own perceived best interest. Core is trying to find out how badly the miners want that 2mb fork.  Is 2MB a request or a demand? They will not honer a request. They will honor a demand if they think it is genuine. The miners may not make one. Core still hopes they can politely refuse the miners without consequence. They may be right, but if they are, Classic nodes will multiply and the market will crash. 

We have recently seen a >$50 rise in price in the middle of a hotly contested election. This is insanity.  The buyers thought that the bigblockers had Core cornered.  They do, but have you ever seen a cornered animal just give up? What would the VC backers of Blockstream think of that? If you think that core cares more about what we think than them, you're dreaming. 

The sad think is that Core doesn't even have a problem. Larger blocks will grow the network faster and actually hasten the need for LN, but they're too stupid to understand that.

I'm not entirely clear how LN is propietary in that sense. Is Poon on the Blockstream payroll? How will they make money off it. Sidechains are Blockstream, so maybe there. But LN?

LN will run on centralized servers by Blockstream and maybe others. They will collect transaction fees, some of which will go to the miners when they make on chain settlement trades and some of which they will keep. Liquid (the sidechain) is proprietary and a terrible idea IMHO. If exchanges share liquidity, then they are no longer distributed. A single whale can manipulate the market from one account. Exchanges can operate more easily on fractional reserve, which effectively increases bitcoin supply. 

ECONOMICS:
Money that is too good of a store of value becomes a poorer medium of exchange because people will hoard rather than spend.  OTOH too much spending increases the velocity and effectively increases supply, making a poor store of value.  MV=PQ. There has to be a delicate balance.  Ideally this balance is not achieved by central banker intervention but by allowing currencies to compete.