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Why S2F has been misapplied in Bitcoin, in mathematical terms:
By using S2F and by restricting ‘flow’ to merely rewards, you are saying Bitcoin supply is an integral function (of changes in supply over time).
But asymptotically changes are zero. There’s nothing to integrate. https://twitter.com/hugohanoi/status/1248071598118076416
By using S2F and by restricting ‘flow’ to merely rewards, you are saying Bitcoin supply is an integral function (of changes in supply over time).
But asymptotically changes are zero. There’s nothing to integrate. https://twitter.com/hugohanoi/status/1248071598118076416
Applying S2F to things that are not integrals in nature is a mistake. Math is useful only when it’s applied correctly to phenomenon. It’s mental masturbation otherwise.
Examples of things with true S2F characteristics: population, CO2 concentration, the Bitcoin’s ledger (security strength as an integral of fee flows over time) https://link.medium.com/dQ2RDcS3B5
And the above is by far not the only problem with misapplied S2F. It reduces a complex phenomenon (market pricing in relative terms) to a single variable function that has no relationship to reality.
https://twitter.com/hugohanoi/status/1244092054201700352?s=21 https://twitter.com/hugohanoi/status/1244092054201700352
https://twitter.com/hugohanoi/status/1244092054201700352?s=21 https://twitter.com/hugohanoi/status/1244092054201700352
The Bitcoin ledger actually has a number of things with S2F characteristics, besides security: growth of the UTXO set, growth of various script types (P2PKH to P2WSH etc).
One can think of security as the ‘master stock’, from which the other types of stocks build on & thrive.
One can think of security as the ‘master stock’, from which the other types of stocks build on & thrive.
