Replying to Avatar gsovereignty

The only reason it's limited to those entities is because they are honest and Bitcoin is not under attack.

Bitcoin is a marketplace for immutable transactions. Censorship resistance is a function of fees, if those 11 entities start censoring transactions, it just means fees go up until enough hashpower comes online to put the censored transactions into a block (motivated by the fees)

Mining is designed to scale between being centralized (more efficient) and decentralized (less efficient) depending on how hostile the world is to Bitcoin. It always operates as centralized as it can given the circumstances, because that's most efficient.

If it comes under attack, decentralization increases until it's sufficiently distributed such that censorship isn't possible.
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crany 👽🧡🗿 2y ago

I follow that sound theory of incentives to address decentralization and resilience. But what of mining pool KYC and threat of ___ taxation of mining rewards (even before sold as capital gain) as proposed by current US regime?

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gsovereignty 2y ago

It's like saying "but what if the government says 1+1 doesn't equal 2, then how can we do maths?"