Post
Topic
Board Speculation
Re: Wall Observer BTC/USD - Bitcoin price movement tracking & discussion
by
marcus_of_augustus
on 27/11/2016, 02:48:57 UTC
Watch out for some serious turbulence and cross-currents with the segwit mining signaling phase if the chinese miners are going to try and over-play their hand, as it appears to be shaping up at this stage.

It could be a prime opportunity for a re-decentralisation of mining away from the big 2-3 chinese mining 'pools'. Since the big chinese pools are centralised and their blocks are easily identified they are vulnerable to an orphaning attack as soon as segwit gets over 51% https://blockchain.info/pools ... and which smaller miner wouldn't want to grab some market share of the juicy rewards from these behemoths and take them down a peg or two? If the big 2 or 3 miners (who now have less than 51%) get orphaned off the network the new mining reward split will be much, much more decentralised (and secure) and shift away from its current a chinese-centric vulnerablity. Getting from here to there could be quite turbulent price-wise but ultimately leave behind a much safer, secure (valuable) network.
 


So how many coins (or what percentage of my BTC holdings) should I sell in order to protect myself from this possibility?

None. There is no way we don't come out the other side of this without segwit and a stronger network ... maybe even we get less 'centralised' chinese domination of mining (up to now they have never exercised or exhibited any coordinated 'centralised' behaviour)

However, it will likely be a good opportunity to add in any downdrafts created by the FUD brigade.