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I’m very confused about drivechains causing miner centralization

Drivechains incentivize the miners to mine. That’s PoW and a free market. Miners make money, more people join, and mining is decentralized

Restricting trade is how governments create centralization. Drivechains are possible, but they are restricted right now.

The current plan is to let small miners drop off, wait for difficulty to decrease, and hope Bitcoin pumps after the halving so the bigger miners can get richer.

It is likely Bitcoin will pump after the halving, but this is a gamble. Austrian economics teaches there is nothing intrinsically valuable about the halving or Bitcoin. That is Marxism. Regardless, mining will become more centralized.

Something isn’t right

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Discussion

Fiat Shenanigans 🤡🌎 2y ago

Pump or not, hard to say. But some sort of uptrend after the halving is likely. We may get to the halving with no price rally at all in which case only the most efficient miners will survive. But after the halving you've effectively cut the rate of inflation and the volume of miner sell pressure on the market in half, so conditions are better for an uptrend.

Diligent Ninja 2y ago

Someone told me the same thing about the halving "already being priced in" when Bitcoin was around 3-4k

Those who do not remember the past are condemned to repeat it

BTCapsule 🏴 2y ago

I do not believe Bitcoin is priced in. I 100% believe it replace fiat.

The problem is not that the price won’t pump. The problem is the amount of time after the halving it takes for Bitcoin to pump. Many miners will drop off, and Bitcoin mining will become more centralized.

₿itcoin 2y ago

Anyone heard news about stratum v2?

Diligent Ninja 2y ago

Some miners may drop off

Others are just firing up

Do you have any data to support the thesis that mining will become centralized?

captjack 🏴‍☠️✨💜 2y ago

not so sure after 4th halving same path

captjack 🏴‍☠️✨💜 2y ago

sha256d algo mining is somewhat #centralized #bitcoin for now

Carman 2y ago

They cause centralization because it makes mining harder, you need to run nodes for all the other sidechains and could have more legal liability now.