- the system remains open such that if I feel really really strongly about it, that I can run a node and mine too
You wouldn't have enough hashrate to have any impact against a network with only 10 miners. Duh.
You're missing the game theory behind what keeps bitcoin secure, which is probably why you're so convinced that it will fail. For example, you said a new entrant wouldn't have enough hashrate to compete. However, if it requires a lot of hash rate for that new entrant to compete, then that means the system is very likely
not centralized.
Duh. Exactly that was _my_ point if you argue there will be only 10 miners.
I am not going to waste my entire day as you drag me into more nonsense debate.
The reason is that if the miners formed a cartel (and bitcoin became centralized), then they would all lower their hashrates to earn a greater profit.
Not necessarily. You always assume Nash equilibrium and are myopic about out-of-band incentives, such as the incentive to apply censorship (KYC compliance) and other payoffs that can come from that.