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    Author Topic: The lottery analogy doesn't sit right with me  (Read 1976 times)
    dadj (OP)
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    December 15, 2012, 07:48:36 AM
     #1

    Hi.
    I was listening to a podcast the other day and they were talking about how mining bitcoins was similar to purchasing lottery tickets. I think this is a bad way to explain bitcoin mining to someone because the design of the analogy is to demonstrate difficulty in the mining process.

    Now in a lotto draw that most people are familiar with there are a fixed amount of numbers that you need to guess. There is a mathematical calculation to do with combinations or permutations to work out the probability. As more people enter the lottery, there is no variation on the probability of winning for any one individual.

    Where this analogy does work is if it is explained as one individual buying multiple lotto tickets, but unfortunately it never seems to be explained in this way.

    I propose that instead of relying on the lottery analogy that we concentrate on a raffle ticket analogy, where it is crystal clear that the more tickets someone gets the higher chance they have of winning compared to someone who just buys one.

    Delegate and Stake Tezos with my bakery: Money Every 3 Days
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