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Main => General Discussion => Topic started by: luckybit on April 08, 2015, 12:23:00 am

Title: What happens to PoW if governments subsidize mining?
Post by: luckybit on April 08, 2015, 12:23:00 am
Suppose China, the USA, and other governments were to pass laws for mining subsidies similar to what we have with food subsidies? Would that be an attack on PoW?
Title: Re: What happens to PoW if governments subsidize mining?
Post by: Ander on April 08, 2015, 12:38:16 am
Why would they do that, it makes no sense.  All it would do is burn more energy.
Title: Re: What happens to PoW if governments subsidize mining?
Post by: luckybit on April 08, 2015, 01:11:20 am
Why would they do that, it makes no sense.  All it would do is burn more energy.

https://www.quora.com/Why-does-China-seem-to-have-the-majority-of-volume-trading-of-Bitcoin-and-what-might-this-suggest-about-its-use-as-a-virtual-currency
Title: Re: What happens to PoW if governments subsidize mining?
Post by: yellowecho on April 08, 2015, 01:29:47 am
Why would they do that, it makes no sense.  All it would do is burn more energy.

https://www.quora.com/Why-does-China-seem-to-have-the-majority-of-volume-trading-of-Bitcoin-and-what-might-this-suggest-about-its-use-as-a-virtual-currency

Nothing 'happens' to PoW if governments subsidize energy usage.. it just means the costs associated with mining are reduced.
Title: Re: What happens to PoW if governments subsidize mining?
Post by: luckybit on April 08, 2015, 02:42:17 am
Why would they do that, it makes no sense.  All it would do is burn more energy.

https://www.quora.com/Why-does-China-seem-to-have-the-majority-of-volume-trading-of-Bitcoin-and-what-might-this-suggest-about-its-use-as-a-virtual-currency

Nothing 'happens' to PoW if governments subsidize energy usage.. it just means the costs associated with mining are reduced.

Right but what if all mining is done in a certain territory because of this? Doesn't this cause geographical centralization of mining?
Title: Re: What happens to PoW if governments subsidize mining?
Post by: yellowecho on April 08, 2015, 02:58:57 am
Right but what if all mining is done in a certain territory because of this? Doesn't this cause geographical centralization of mining?

Yes, it could cause geographical centralization of mining.  That could create short term issues in price and security if that government cracked down on it but long term I don't see it being an issue as other countries would have an interest in keeping the network running and difficulty would be adjusted.
Title: Re: What happens to PoW if governments subsidize mining?
Post by: donkeypong on April 08, 2015, 03:04:28 am
You must have smoked some weed, man. This has about as much chance of happening as an asteroid impact.
Title: Re: What happens to PoW if governments subsidize mining?
Post by: btswildpig on April 08, 2015, 03:27:00 am
The governments better subsidize more medical bills before subsidizing miner ....
Title: Re: What happens to PoW if governments subsidize mining?
Post by: BTSdac on April 08, 2015, 03:33:03 am
Suppose China, the USA, and other governments were to pass laws for mining subsidies similar to what we have with food subsidies? Would that be an attack on PoW?
if the governments think we have much much energy,  if governments think the air with PM2.5 500 in Beijing is clear
I think they would do