Nostr

I have two issues thst I haven't been able to find a satisfying answer to when it comes to BTC. Can anybody help prove me wrong, so that I can keep calm and stack sats?

With adoption, the pressure for regulation with rise. The nature of BTC makes it very difficult, but IMHO not impossible. Here is what I am afraid of:

1) Non-fungibility - Because of BTCs public ledger, every transaction can be traced, every coin can be traced, which effectively makes every single sat on chain non fungible. That IMHO is a vector for regulation as governments can make it illegal/regulated to accept or pay with coins that for instance have been used for illegal activities, mined using fossil fuels or whatever else.

2) centralization of mining - Given that BTC can mined only with specialized, usually quite expensive HW (ASICs), I expect creeping tendency towards centralization of miners. Not absolute centralization. where there would only be a single pool, but centralization where over 50% of mining capacity is in hands of a small number of big companies that are easy to "hold by their balls".

An Capone 🌗 2y ago

1) Not really - That is a hack, not a solution. It doesn't solve the underlying issue, just provides a bit of relief.

2) I believe they will participate. What I am hinting at is a strongarmed 51% attack on miners. I don't think they would stop mining, I think they could be coerced to alter the rules.

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Discussion

Diacone Frost 2y ago

The theory that there will be two (or more) sorts of coins is quite old. It's also possible that the price for the different classes of coins will be different. Anyway, I take it as chance to actually build a parallel structures with it's own money.

I don't believe that 51% attack is feasible for anyone. Just look at the hash reate right now. How many cards you need to buy (and/or manufacture)!. Not to mention that you need a place/cooling/power. That's (hundreds of) $ billons. You can't hide such as operation. Someone will notice that. And in that case all others have to do is to add let's say another 5% to stop them.

Also, who is them? Do you think that let's say China will cooperate with US gov. on this plan?

An Capone 🌗 2y ago

Multiple classes of coins is in my view definitely scary. I'd love to be as optimistic, but I cannot in good conscience. If a government can devalue your coins and/or make them less useable by their decrees, you are at their mercy. That is exactly what btc is supposed to prevent.

That's the problem of creeping centralization. Right now, we can see giant server farms and data stores. There is a definite, relatively small number of them, that can be coerced if needed. I expect something similar to happen to miners too. I don't think any government would purchase their own hw and secretly do a 51% attack. The vector of attack here is regulation of already operating miners.