A common argument advanced by Bitcoin proponents is that unlike banks and credit cards, Bitcoin has low (or even zero) transaction fees. The claim is a complete red herring, and in this post I’ll explain why. Let’s assume for the purposes of argument that Bitcoin transaction fees are, in fact, zero. There are small mining-related […]
A Response to Jerry: Craig Should Still Dismiss
May 7, 2013 by
[Cross-posted on my blog, Managing Miracles] Jerry Brito, a sometimes contributor to this blog, has a new post on the Reason blog arguing that I and others have been too harsh on Craigslist for their recent lawsuit. As I wrote in my earlier post, Craigslist should give up the lawsuit not just because it’s unlikely […]
Security Lessons from the Big DDoS Attacks
March 29, 2013 by
Last week saw news of new Distributed Denial of Service (DDoS) attacks. These may be the largest DDoS attacks ever, peaking at about 300 Gbps (that is, 300 billion bits per second) of traffic aimed at the target but, notwithstanding some of the breathless news coverage, these attacks are not vastly larger than anything before. […]
Basic Economics of Bitcoin Mining
February 5, 2013 by
Arvind wrote yesterday about the availability of chips that do super-fast Bitcoin mining. I want to follow up by unpacking the economics of Bitcoin mining, to see what the effect of the new chips will be, and more generally what the future of Bitcoin mining looks like.
