[cryptography] bitcoin scalability to high transaction rates

Daniel Carosone dan at geek.com.au
Wed Jul 20 22:01:23 EDT 2011


On Tue, Jul 19, 2011 at 08:25:40PM +0300, lodewijk andr? de la porte wrote:
> I personally still worry about how big the early bird bonus was, someone
> estimated the earliest of participators had a million of bitcoins.

If/since bitcoin posessess the full history log and lacks the privacy
characteristics discussed here, this should be readily verifiable.
Conversely, if this can't be verified, perhaps the drawbacks aren't so
great in practice as has been presumed?  It seems like an interesting
test.

Of course those early participants may have hidden themselves to a
degree with multiple keys, but so may others.

Then there is the question of motivation and economic benefit: in an
early adoption phase, more so than later, the value of these coins is
increased by spending them and thus growing the economy and
encouraging participation and the success of the currency.

As I understand it, those early coins are identifiable.  If the risk of
such hoarded coins being suddenly released becomes too great, can the
network effectively devalue them by not accepting them, or attributing
them lower exchange value?  This would obviously need to be a
consensus change by the majority of the market population, threatened
by someone with a majority of the early coins...

--
Dan.
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