Guest post by @Blake Richman @Novablock Capital

The mining space is hardware solving math problems when you break it down to the rawest element, but derivative of that activity, an entire game-theory driven economy has developed, underpinned by the project-specific cryptoeconomics. It’s a fascinating space where miners point their rigs to more profitable algorithms than just btc and eth, but that loss of hashrate on btc/eth changes the economic equation across the board, and the additional hashrate dedicated to smaller networks has the effect of lessening profitability for each contributing miner, and potentially destabilizing that smaller network through 51% attacks (1 party achieving >50% hrashrate now theoretically controlling governance), and resulting malicious governance achieved through that scale.

There exists a much more interesting market behind mining than actually just the basic “what is it”. That discussion is important to the common consumer too, and it is an important first step in the discussion, but once you understand “hardware units just brute forcing encryption algorithms, such that the answer is sufficiently low enough to satisfy the currently difficulty adjustment”, there is an entire game-theory market that results:

  • which coins are profitable
  • is hashrate growth rate too high, which exponentially decays profitability
  • are there near term potential inflection points on hashrate(ie new efficient miners release)
  • types of mining – ongoing vs speculative

Come along Tuesday 6pm Palo Alto to learn more about Bitcoin Mining with @Daniel Edwards and @Blake Richman & his ASIC Miner BOOK TICKETS HERE https://fin.sv/2n8G5Rj

Pemo Theodore

Pemo Theodore is a Media Publisher & Event Producer and a great people connector.. She is Founder/CEO Silicon Valley TV which has served the San Francisco Bay Area for 11 years! She has produced Silicon Valley Events for Investors & Startups for 9 years. Pemo loves to video interview venture capitalists & founders to engage the human behind the success stories.. She has been Executive Producer of FinTech Silicon Valley for 5 years, organizing twice monthly FinTech talks & panels in San Francisco & Palo Alto. She believes in learning through a great discussion with experts in the domains. Pemo has a talent to bring the right people together and is an incredible networker. Pemo's events have been seen as supporting Venture Capitalists & Angels in sourcing great deal flow from startups who attend her events. Many founders have received funding through meeting investors at her events. Her favored medium is visual media and she has built up a great body of work of videos of panels & interviews in Silicon Valley.startup ecosystem.

View all posts

Stay Updated on FinTech Silicon Valley

Stay updated with FinTech Silicon Valley

Sign up for Silicon Valley Blockchain Invest Newsletter

Our Latest Podcasts

Subscribe FinTech Silicon Valley youtube

Follow us on Twitter