By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Notification
yourcryptonewstoday yourcryptonewstoday
  • Home
  • News
    • Crypto Bubbles
    • Regulations
    • Metaverse
  • MarketCap
  • Altcoins
    • Solana
  • Crypto
    • Bitcoin
    • Ethereum
    • Cardano
  • Blockchain
  • Market
    • Nft
  • Mining
  • Exchange
  • Analysis
    • Evaluation
    • Multi Currency
Reading: Bitcoin Miners, Economic Irrationality Can Be Fatal
Share
bitcoin
Bitcoin (BTC) $ 78,847.00
ethereum
Ethereum (ETH) $ 2,479.89
tether
Tether (USDT) $ 0.999886
bnb
BNB (BNB) $ 699.06
usd-coin
USDC (USDC) $ 0.999839
xrp
XRP (XRP) $ 1.40
binance-usd
BUSD (BUSD) $ 0.998638
dogecoin
Dogecoin (DOGE) $ 0.085396
cardano
Cardano (ADA) $ 0.203454
solana
Solana (SOL) $ 106.47
polkadot
Polkadot (DOT) $ 0.852218
tron
TRON (TRX) $ 0.340255
Your Crypto News TodayYour Crypto News Today
  • Home
  • News
  • MarketCap
  • Altcoins
  • Crypto
  • Blockchain
  • Market
  • Mining
  • Exchange
  • Analysis
Search
  • Home
  • News
    • Crypto Bubbles
    • Regulations
    • Metaverse
  • MarketCap
  • Altcoins
    • Solana
  • Crypto
    • Bitcoin
    • Ethereum
    • Cardano
  • Blockchain
  • Market
    • Nft
  • Mining
  • Exchange
  • Analysis
    • Evaluation
    • Multi Currency
© 2024 All Rights reserved | Protected by Your Cryptonews Today
Your Crypto News Today > Mining > Bitcoin Miners, Economic Irrationality Can Be Fatal
Mining

Bitcoin Miners, Economic Irrationality Can Be Fatal

January 16, 2025 4 Min Read
Share
Bitcoin Miners, Economic Irrationality Can Be Fatal

Some miners at OCEAN have began making use of the Coin Age Precedence algorithm throughout block template building utilizing DATUM. Initially, Bitcoin Core initially chosen transactions to incorporate in blocks based mostly on what that they had seen first of their mempool. This logic was ultimately changed by prioritizing older cash, i.e. that had been sitting round unspent longer, over different cash. This was ultimately solely utilized to a small portion of the blockspace, after which ultimately completed away with solely across the time of Segwit. It’s nonetheless maintained in Bitcoin Knots.

I can solely speculate as to the motives of the miners doing this, however given OCEAN’s rhetoric I can guess that it has one thing to do with prioritizing “monetary” transactions over others. Even when not, even whether it is purely to assist small worth UTXO house owners, it’s nonetheless each bit as irrational.

You possibly can partition blockspace as a miner nonetheless you need, and prioritize ordering of transactions nonetheless you want inside these partitions, however it doesn’t change the truth that blockspace is a fungible good being valued on an open market. If standards aside from the feerate are used to resolve which transactions to incorporate, you’ll go away cash on the desk. The one state of affairs the place that will not be true is one the place these standards have been 1:1 an identical to deciding based mostly on feerate, which might be a meaningless standards.

Making a subsection of blockspace chosen for by different standards finally accomplishes two issues: 1) leaving cash on the desk as a miner, as definitionally any significant non-feerate standards leads to gathering much less charges, and a couple of) create a bucket of blockspace submitted to aggressive “price” pressures in accordance with no matter totally different standards is used, with none of that stress creating direct income will increase for miners utilizing this new standards.

The brand new subsection of blockspace doesn’t finally cut back price stress, it merely leaves them making much less cash and customers benefiting from this new transaction choice standards subjected to totally different aggressive pressures miners don’t instantly profit from.

You possibly can’t disguise from the fact that blockspace is a fungible good priced on the open market. You possibly can settle for that, or you may lose cash. The one different is to futilely attempt to censor courses of transactions you don’t like, and in the event you occur to succeed, you destroy a core property of Bitcoin within the course of.

Mining staying decentralized, broadly distributed with many small operators, is essential for Bitcoin’s censorship resistance. It’s a disgrace to see indicators like this of such smaller miners being economically irrational, provided that it has big implications for his or her success long run.

This text is a Take. Opinions expressed are solely the writer’s and don’t essentially mirror these of BTC Inc or Bitcoin Journal.

You Might Also Like

Rapid Denial from the Company

Shocking FTX Creditor Allegations Reveal Blocked Billion-Dollar Rescue Bids

Hut 8 Doubles Bitcoin-Backed Loan With Coinbase to $130M, Locks in Lower Rate

Exchanges face heat as OKX funds ZachXBT probe into 95% RAVE crash

US Government-Controlled Wallets Transferred an Altcoin to Coinbase—Possibly for Sale

TAGGED:MiningMining NewsNews
Share This Article
Facebook Twitter Copy Link
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Popular News

image
Is Arthur Hayes’ FLOP Token Airdrop Really a ‘100% Fair Launch’?
Are NFTs Making a Return to Auction Houses?
Are NFTs Making a Return to Auction Houses?
Bitcoin miners' profits decline for the fourth consecutive month
Bitcoin miners’ profits decline for the fourth consecutive month
German tradFi giants confirm trial to mine Bitcoin with surplus energy to stabilize grid
German tradFi giants confirm trial to mine Bitcoin with surplus energy to stabilize grid
Bitcoin Not a Threat to US Dollar, Donald Trump Asserts
Bitcoin Not a Threat to US Dollar, Donald Trump Asserts
Bitcoin Mining Costs Soar as Miners Expect Long-Term Price Boosts
Bitcoin Mining Costs Soar as Miners Expect Long-Term Price Boosts

You Might Also Like

image
Exchange

South Korea Sees Trading Volume Boom in These Altcoins – XRP Loses Top Spot

December 5, 2025
Bitcoin Exchange Binance Continues to Focus on USDC Pairs! Here Are the Latest Listed Altcoins
Exchange

Bitcoin Exchange Binance Continues to Focus on USDC Pairs! Here Are the Latest Listed Altcoins

April 25, 2025
Giza Tech hits $1 million in autonomous capital 
Market

Giza Tech hits $1 million in autonomous capital 

March 25, 2025
image
Exchange

XRP and SOL Futures ‘Spiked’ in July

August 9, 2025
yourcryptonewstoday yourcryptonewstoday
yourcryptonewstoday yourcryptonewstoday

"In the fast-paced world of digital finance, staying informed is essential, and we’re here to help you navigate the evolving landscape of crypto currencies, blockchain, & digital assets."

Editor Choice

Billionaire Stan Druckenmiller Shares Details About New Fed Chair Nominee Kevin Warsh – Hawk or Dove?
Amazon doubles down on Anthropic with $4 billion investment
THE AS OF THE PROTERS PRO IN THE BITCOIN 2025 CYCLE

Subscribe

* indicates required
/* real people should not fill this in and expect good things - do not remove this or risk form bot signups */

Intuit Mailchimp

Follow Us on Socials

We use social media to react to breaking news, update supporters and share information

Twitter Linkedin Facebook
  • About Us
  • Contact Us
  • Disclaimer
  • Terms of Service
  • Privacy Policy
Reading: Bitcoin Miners, Economic Irrationality Can Be Fatal
Share
Follow US
© 2025 All Rights reserved | Protected by Your Crypto News Today
Welcome Back!

Sign in to your account

Lost your password?