Any suggestions on how to think about it a deeper level? I’m new around here just trying to get my head around some of these ideas.
A couple points, if your one year decay rate is 12% and you have $1 billion in the system you will decay $120 million that will flow back to the system. Yes it will matter how close you are to the nodes of activity. That is the point. This updates our decision function when engaging in commerce. The question isn’t is this the most affordable apple, it is is this the best apple made by the best process in a way that will lead to the most value for future apples.
I still have othe options to entice the mining of my transactions. Potentially more attractive than fees.
I’d be more than happy to engage the existing banking system and with unlimited capital I wouldn’t involve Bitcoin. The cost from 0 to transaction 1 on btc is 1000x less than 0 to 1 on the banking system. State of Texas wants 20 million in reserve to even sniff your banking application.
Any suggestions on how to think about it a deeper level? I’m new around here just trying to get my head around some of these ideas.
I think writing down a monto carlo model helps to make decisions explicit. At best you do it in a form where the model is easy to modify for other people.
You could run a tournament where people can submit bots that act in the economy to maximize their returns.
I’d be more than happy to engage the existing banking system and with unlimited capital I wouldn’t involve Bitcoin.
Bitcoin invests a lot of resources into not needing to trust any single entity. That’s why it’s transactions are much more expensive than Ripple transactions.
If you want to trust central authority to uphold law anyway, then it’s likely beneficial to not go via bitcoin trust model and have cheaper transactions.
Any suggestions on how to think about it a deeper level? I’m new around here just trying to get my head around some of these ideas.
A couple points, if your one year decay rate is 12% and you have $1 billion in the system you will decay $120 million that will flow back to the system. Yes it will matter how close you are to the nodes of activity. That is the point. This updates our decision function when engaging in commerce. The question isn’t is this the most affordable apple, it is is this the best apple made by the best process in a way that will lead to the most value for future apples.
I still have othe options to entice the mining of my transactions. Potentially more attractive than fees.
I’d be more than happy to engage the existing banking system and with unlimited capital I wouldn’t involve Bitcoin. The cost from 0 to transaction 1 on btc is 1000x less than 0 to 1 on the banking system. State of Texas wants 20 million in reserve to even sniff your banking application.
I think writing down a monto carlo model helps to make decisions explicit. At best you do it in a form where the model is easy to modify for other people.
You could run a tournament where people can submit bots that act in the economy to maximize their returns.
Bitcoin invests a lot of resources into not needing to trust any single entity. That’s why it’s transactions are much more expensive than Ripple transactions.
If you want to trust central authority to uphold law anyway, then it’s likely beneficial to not go via bitcoin trust model and have cheaper transactions.
I took your advice and posted this over in discussion:
http://lesswrong.com/r/discussion/lw/m38/publishing_my_initial_model_for_hypercapitalism/