Mining Incentives – Part 3 – Short-Term vs. Long-Term – BitMEX Blog

Abstract: In this third piece on crypto-mining incentives, we look at the different time periods miners may choose to maximize profits; short-term or long-term.  We draw analogies with related concepts in “traditional” mining, such as “high-grading”.  In corporate finance circles there are rumours of potential IPOs for crypto-miners, which could mean management focus shifts to the short term, as they may unfortunately need to justify quarterly earnings to investment analysts. We then look at the implications of this on potential network issues, such as Replace By Fee (RBF), ASICBOOST and the blocksize limit.  Whether one likes it or not, we think full RBF is coming.


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