Your 1st and 2nd sentences seem contradictory. My view is that making ASIC infeasible (to level the playing field) is a drastic market interference, for a good reason. A free market evolves towards concentration of wealth and monopolies. Democratic voting creates a more level playing field (1 person = 1 vote) by causing government to write the rules (algorithmic protocol) to bias the free market (capitalism) away from concentration of wealth, towards socialization.
Developers are the "governing employees" that make Zcash more democratic, more social. Equal access to coins based on investment expense is a fair market, made possible by a "government" (algorithm). It's a democratic idea, 1 vote = an equal investment expense.
It's true my ROI is entirely speculative. My point was to show small miners will lose only if big miners lose. Equihash is a good system for preventing wealth concentration at the outset: if ASICs were feasible, special interests could be a problem at the outset. Look at bitcoin's miners.
The economic/democratic problems I'm about to describe for any constant-quantity coin like Zcash are long-term. Given no other option, not even in theory, I'm choosing Zcash to be in the 1% instead of the 99%. All economic woes are a consequence of the physics of evolution. There is no solution. Humans are not capable of subverting the physics of evolutionary progress towards higher efficiency.
Anonymity that prevents government from unjustly targeting individuals is a form of wealth distribution. It can take away power of special interests who try to subvert democracy. But it can also prevent government from performing the good aspects of its democratic role. Among other things, if a constant quantity coin becomes the default currency, compound interest always results in wealth concentration in the lenders. Gold historically works only in times of anarchy and war. The people needing loans also need an inflating currency (but not inflationary prices). Ideally all the interest charges should be used to finance all of government. Interest should be the only tax, and that tax should fund the expansion of the society (which is ~ equal to its need for the currency) so that there is no inflation in prices or wages, which keeps contracts in that coin valid (think ETH).
Equitable computation is a more intelligent network (solves problems) for deep reasons, despite being less efficient. In A.I., the most effective systems evenly distribute computation. The constant quantity of total available CPU time and memory space is the "currency" that needs to be distributed to grant access. There's a conversion factor between the CPU time and memory space that is not unrelated to Einstein's meters=i*c*seconds based on Landauer principle. Genetic algorithms, agoric economic agent systems, bayesian techniques, & neural nets seek to redistribute computation among a wider variety of "genes/agents/nodes" and the "weighting factors" ("wiring" or "links" in the web) between them by distributing computational requirements more evenly, economizing the resources towards solutions. An unused node, gene, or web page (no links to it) and a very low price (in agoric agent-based computing) or very low probability (bayesian) are all computational elements that can be eliminated from the algorithm with minor error (a universal NAND gate with no wiring to it is the simplest example of an unused computational element).
Like everyone else interested in cryptocurrencies, I want to make as much profit with the least amount of work. Constant quantity currencies might be ideally suited for the 1% and a subversion of democracy. Wei Dai expressed a similar concern about bitcoin. That's why he likes tracking commodities. An ideal coin would expand in lock-step with its M2-like usage to keep wages and prices constant, which keeps contracts in that coin valid, and prevents early adopters from profiting (gaining more access to society's finite resources) without having to work for it (contributing to society).
A constant quantity currency is contrary to equitable (intelligent) economics for these reasons. It is only optimal when the resources it represents control of are a constant, as in A.I. systems constrained a specific hardware system. It will be beneficial in times of war and anarchy for the survivalists have planned ahead. Anonymity amplifies this benefit.
No comments:
Post a Comment