Bitcoin & Crypto News

> Just as a side note, as I argued before, the DAO collapse and the ensuing hard fork was a natural experiment that delivered a triumph to Williamsonian contracting and a decisive blow to Hartian contracting, ironically just months before… Continue Reading →

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> What I find so intriguing about crypto is that it offers commitment devices that are built from the viewpoint of the action (the economic transaction), and not from the viewpoint of the actor (the economic agent). This seems interesting, but… Continue Reading →

Usually in economics the word “commitment” refers to promises that are *forward-facing*, something like “I put myself in a position such that either I later do X or I lose $YYY”. This is interesting because I actually see blockchains as… Continue Reading →

Regarding Bitcoin and Ethereum dev and client decentralization, I think those four graphs miss two points: Many of the so-called “alternative Bitcoin clients” are in fact forks of the same codebase as Bitcoin Core, whereas all Ethereum implementations have fully separate… Continue Reading →

> There’s a long history of nationalization to prove that after governments (IMO the most likely attacker) take over, operational efficiency tends to drop strongly. One study estimates that oil mining companies see their profitability drop by over 50% post… Continue Reading →

> This statement is misleading, because he is really only talking about what a 51% attacker could do to the very last blocks in the blockchain. No, I’m talking about what a 51% attacker can do to *any* block in… Continue Reading →

When I see voting games I usually analyze (i) 51% attacks and (ii) bribe attacks. Looking here: A malicious buyer 51% attacks to force a refund. Then, if everyone recognizes the refund was malicious, the developers can just do another sale. A… Continue Reading →

This doesn’t seem as ironclad as it sounds. It seems entirely possible that there would exist paths from you to _any_ possible recipient going through _any_ of your channels. Any sufficiently well-connected graph has this property.

I don’t think you actually solved the trilemma; it seems like you unwittingly chose the “inefficiency” side, except it didn’t hit that hard because the markets were smaller back then. Specifically: > and a promise to burn the unsold tokens This… Continue Reading →

> But who will control the miners at L1? Fred again. Fred can charge higher fees for his L2 sequencing and inclusion services, and increase his profits, if he controls both paths for getting transactions on-chain. I don't see why… Continue Reading →

I feel like this post is addressing an argument that isn’t the actual argument that MEV auction proponents (including myself) are making! In particular: > But the funds “created” by an MEV auction don’t come from nowhere. Ultimately the money… Continue Reading →

> We recommend updating all default metrics from circulating supply to total supply. This completely ignores why the default was changed to circulating supply in the first place. Market cap is often used in practice as a way of comparing which… Continue Reading →

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I think there’s an is-ought dichotomy here that’s being missed. Yes, it is true that, within the current economic structure, lambos are not being produced much because their resource cost is high, and public goods are not being produced much… Continue Reading →

> Underproduced compared to what? “Compared to the consumers’ true preferences,” a mainstream economist would respond. This would imply, however, that Lambos are also underproduced, and almost everyone would agree that this conclusion is ridiculous. Huh? This does not make… Continue Reading →