Money 2.0 Stuff: Greed is good

On-chainJune 15, 2020, 9:49PM EDT
UPDATED: March 10, 2022, 3:41PM EST
Money 2.0 Stuff: Greed is good
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One theory is that miners are economically rational agents. The market assigns Bitcoin, Ether and some other coins a monetary value, hardware and electricity costs some amount, and miners will continue mining so long as there is a remaining profit margin. Implicitly bolstering the cost to do annoying things to a particular network, the pursuit of profit produces an important second-order effect without which blockchains and their associated cryptocurrencies would be fundamentally worthless. 

Mining pool Ethermine, which on June 11 facilitated a high-fee Ethereum transaction in which a sender spent around $2.4 million — the second mysterious transaction from the same sender in as many days — has decided to distribute the fees among its miners.

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