Post
Topic
Board Bitcoin Discussion
Re: "Failure to Understand Bitcoin Could Cost Investors Billions" (Bitcoin's flaws)
by
User705
on 13/02/2014, 19:20:13 UTC
There is a much easier way for the government to take over Bitcoin than 51% attack and selfish mining. Simply tax the coin and per footnote [2] all coin is tainted regardless if you used Tor or not, so in effect regulate every pool and exchange. Regulation can accomplish much of the same goals as takeover. Then later the large corporations beholden to the government buyout the pools and exchanges, and then the drift towards cartels and corporate-fascism.
Don't you think that P2P mining pool can solve the problem of regulation or big corporations takeover?

Definitely not since it is so easy for the centralized pools to have their miners compute shares for a competing P2Ppool but withhold block solutions from the P2Ppool (and submit them for themselves) thus parasiting the P2Ppools of revenue while not impacting the revenue of the centralized pool. So centralized pools which wanted to eliminate P2Ppools could do so (in theory).

...
That doesn't sound right at all.  A solution with a different payout address would no longer be valid.  Also they are spending hash power so it's not parasiting.  At most it will cause the pools luck to appear to be bad but since P2P users have altruistic reasons it isn't likely to cause them to switch.  51% attack is an overblown problem anyways.  As you stated yourself government actors have better tools to combat bitcoin  and for private attackers it is simply not economically viable.