Therefore as the red block recedes into the distance it will, from the view of the observer, appear to shrink into the waves which intersect with the line of sight. The ship will appear to sink from the bottom up.
No matter how long we stretch out the distance between the observer and the red block, there will always be an area where the waves breach the line of sight.
If the observer is on a hill higher than the ship, the line of the horizon is still at eye level, thus creating an area where the waves, no matter how small, could intersect with the line of sight.
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The challenge "The waves three quarters of the way wouldn't be put above eye level by perspective beceause they would be shrinking proportionally, thanks to perspective, thus never actually intersecting the line of sight." can be answered by the following:--
If that were true it would be impossible for a ship to lay atop the horizon. If that were at all accurate a receding ship ship would continually shrink into the horizon infinitely, never breaching the line which divides sea and sky.
Quite clearly, ships do appear above the line of the horizon all the time. Even if the observer is at an altitude above the ship, the ship will still breach the horizon line. The ship can still lay atop the horizon. Therefore, if ships can breach the line of sight, so can the waves.
http://farm1.static.flickr.com/125/354768249_e32ca8588e_o.jpgHere we have a picture of a man sitting at the edge of a cliff side next to a bicycle. In the distance we can see average fishing boats above the line of the horizon. We can practically see entire hulls of the ships above the horizon line. It is now beyond doubt that receding ships can ascend above the horizon line.
From 5, 10, 50, or 100 feet in the air, receding boats will ascend past the line of the horizon as they recede. Every child knows this. We can see that almost the entirety of the visible boat is above the level of the horizon in the image. Unless it is argued that the hull of that distant boat is enormous and higher than the cliff upon which the man sits, there is no other recourse than to admit that an object lower than the observer's altitude can recede and ascend past the line of the horizon.
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To the challenge "the horizon on a flat earth is infinitely far away" we answer with an analogy:--
An ant has a horizon located a few inches away.
A mouse has a horizon located about six feet away.
A human has a horizon located about thirty miles away.
An eagle has a horizon located over a hundred miles away.
Ergo as we increase altitude we are increasing our vantage point. The horizon is finite, changing with our altitude. Thus, the higher we go, the farther we can see and detect.
In macro photography there is a limit to the horizon. It is usually on the range of feet depending on the height of the camera from the ground. Hence, sufficient proof that the distance to the horizon is finite, tied to the altitude of the observer.
If the horizon were located an infinite distance away from the observer, how is it possible for a ship to sit atop the horizon without being infinitely far away from the observer?