4 Reasons Why Miners are the Most Trustworthy People
Changyong Liu, a Bitcoin economy expert and university professor in China, explained why he trust miners more than any other stakeholders in the whole community.
4 reasons to trust Bitcoin miners
1.Miner’s stake is almost completely compatible with the whole ecological interests: “the main chain survives, the user expansion” is the guarantee of their interests.
2. Their decision-making mechanism is simple: to dig, or not to dig.
3. Competitions among miners are simple, fierce and bitter. ASIC machines that are out-performed by new generations will be deserted ruthlessly.
4. No excuse from decision-making. ASIC miners are specialized equipments that have little reclamation value or secondary functions. Their investment on hardware is absolute sinking capital. There is no immediate and easy withdrawal from ecosystem for them. They have to make decisions with the best of their rationality.
These arguments were very persuasive and soon retweeted widely, fueling the flame that has been already burning high in China’s Bitcoin community.
He further analyzed the stakes of different participants of the ecosystem from an economic perspective:
Holder for trading purpose may sell his coins at will any time (may not be true with whales). Developers rely too much on idealism and passion and their expertise and experience are universal across all blockchain-related projects. Startups may shift business model and will not reject lucrative opportunity even at the cost of hurting the mutual interest of the whole ecosystem. The seemingly selfish miners are actually the most trustworthy people.
Under these considerations, miners are compelled to secure the network in the most simple and direct way, driven purely by interests and irrelevant to nationality, religion or morality.
Professor Liu supported the implementation of SegWit, scaling and LN. These arguments was an extension of his previous statement on SegWit.
1. SegWit, scaling and LN should all be implemented.
2. It’s wrong to set the main chain as settlement network.
3. Different demands for LN and main chain are not overlapped.
4. Congestion onchain will result in Matthew effect and monopoly of the LN.
5. Decision from miners are most rational and therefore trustworthy.
6. The system security is jeopardized by technology and opinion monopoly.
7. Softfork will increase burdens and risks for system operation in the long run.
Of course, his personal opinion was challenged.
User are the core of Bitcoin security. Miners are driven by price and price is maintained by users. Miners simply follow the price. No money, no miner.
Can we pay the utility bill with Bitcoin without the buyers?
The question was soon replied by Jiang Zhuo’er:
Buyers paid a price to hire miners to maintain the Bitcoin security. But miners are far more loyal to Bitcoin as they cannot dump their stakes in 5 minutes or even short Bitcoin instantly. But traders can.
As a well-known scholar in Chinese Bitcoin community, Changyong Liu earned his doctoral degree in Economy from Beijing University in 2007. Professor Liu has been actively engaged in the research and knowledge sharing on Bitcoin and blockchain since 2013. He released 3 videos clips on bitcoin tutorials.
He told 8btc:
I don’t own any hashrate or have connections with a true miner. I am just a long-term hoarder and active user. My judgement is based on economic analysis.
8btc will watching closely on the developments in Chinese bitcoin community and deliver them faithfully.