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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

Pemo Theodore

Pemo is a Media Publisher & Event Producer. She is Founder/CEO Silicon Valley TV She is the Executive Producer of FinTech Silicon Valley & organizes Bay Area FinTech meetup: Silicon Valley FinTech meetup & Blockchain Music meetup with almost 3k members.She has produced Silicon Valley Events for Investors & Startups 7 years. She video interviews venture capitalists & angel investors & FinTech experts. She partners with videographers to cover San Francisco Bay area startup conferences & meetups with professional & economical livestreaming, video & foto packages Silicon Valley TV She is based in Silicon Valley & has been involved in online business for 14 years. She has been in small business for 46 years in Ireland, London, Canada & Australia. She also published a free ebook (the findings of 1 year research from VCs, angels & women founders) “Why are Women Funded Less than Men? a crowdsourced conversation” She was TheNextWomen‘s most prolific contributor of 2011. Silicon Valley TV has been noted as a platform for supporting high growth women led companies in Huffington Post

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