-----BEGIN PGP SIGNED MESSAGE----- Hash: SHA256 On Sun, Jul 14, 2013 at 11:18 AM, Jorge Timón <jti...@monetize.io> wrote: > All the arguments in favor of this pegging use zerocoin's point of > view. Sure it would be much better for it, but are additional costs to > the bitcoin network and you cannot do it with every chain.
Seems that Peter is describing a system that requires no changes at all to the Bitcoin codebase and thus there are no costs whatsoever. Peter: I'm a bit confused by this concept of "bi-directional sacrifice" though, I assume there exists only a sacrifice in one direction right? Wouldn't selling a zerocoin be just a matter of giving zerocoin a rule so that the zerocoin tx moving it to the new owner only happens if a specific form of bitcoin tx happens too? > Merged mining is not mining the coin for free. The total reward (ie > btc + frc + nmc + dvc) should tend to equal the mining costs. But the > value comes from demand, not costs. So if people demand it more it > price will rise no matter how is mined. And if the price rises it will > make sense to spend more on mining. > "Bitcoins are worth because it costs to mine them" is a Marxian labor > thory of value argument. > It's the other way arround as Menger taught us. Merge mining is very much mining a coin for free. Ask not what the total reward is, ask that the marginal cost of merge mining an additional coin is. The issue is that unless there is a cost to mining a *invalid* block the merge mined coin has little protection from miners who mine invalid blocks, either maliciously or through negligence. If the coin isn't worth much, either because it's market value is low or the worth is negative to the malicious miner, your theories of value have nothing to do with the issue. Gregory Maxwell has written about this issue before on the #bitcoin-dev IRC channel and on bitcointalk as well if memory serves. I advise you to look up his description of the problem, almost everything he writes on the topic of crypto-coin theory is spot-on correct. -----BEGIN PGP SIGNATURE----- Version: GnuPG v1.4.11 (GNU/Linux) iQEcBAEBCAAGBQJR4vpGAAoJEEWCsU4mNhiPwu0IAMrzkVfI0CQuNJRCR+jwhNts juEerApSSpBes6CjLBJJYZWDdMReSl6izqNDancnJygYc+Q5/IkwBispyZyeIVqY HbV+jyAFQeVaJBZp8N+ZUDfN9/35SkPb4Y30dkq6V76hBfl+59bWq4qG0dhiO915 SBWAUPLspb5GOyu494GJUr4SPzgs9mAKfNGeQR2anOLj8Qam8Khfa4Zm5T5dX8WQ vBunUCLykPvWBC3nuTDBU5gQu4TGW9ivGB4p6yLr7MyaPQYZEnYGqgU/yIfAhnBj MfIfs6njPwhGMwteNmwLoS0VLRBFjWZDflquJ0NK6mNLR3c9yjOFMFPTTZFVinQ= =b40P -----END PGP SIGNATURE----- ------------------------------------------------------------------------------ See everything from the browser to the database with AppDynamics Get end-to-end visibility with application monitoring from AppDynamics Isolate bottlenecks and diagnose root cause in seconds. Start your free trial of AppDynamics Pro today! http://pubads.g.doubleclick.net/gampad/clk?id=48808831&iu=/4140/ostg.clktrk _______________________________________________ Bitcoin-development mailing list Bitcoin-development@lists.sourceforge.net https://lists.sourceforge.net/lists/listinfo/bitcoin-development
