Quote from: Artemis3 on July 09, 2019, 04:40:55 PM

Quote from: Khaos77 on July 07, 2019, 06:02:14 PM

Quote from: lepar on July 07, 2019, 05:46:02 PM

What are your thoughts on this?

You are right and You just pointed out a Major Flaw in Bitcoin.

But all you will get back from the community is nonsense that Bitcoin is most secure due to it's energy waste,
which we both know is incorrect , as a few pool operators could double-spend on a whim, regardless of energy expended.

Good Luck , but don't be surprised when the bitcoin maximalist all deny the reality in front of them.

What you fail to see is how the market forces will fix this issue on their own. While bitcoin value may keep climbing, bitcoin mining is doomed to become unprofitable, and the largest operations are the first ones to close. Asic efficiency plays an important role to this, more and more hashrate makes it harder for everyone to continue, starting with the countries with the most expensive electricity. But some years down the road, both factors will play against bitcoin mining, especially large operations.

See, soon only 100TH Asic miners will be worth running, perhaps at 7nm or 4nm, those might eat a quarter less electricity than the earlier offerings but that's still a lot of power for ever diminishing returns. What you saw last year, people quitting at 3k bitcoin prices, will repeat again. People will find it impossible to mine at 6k or even 9k price which will return to at some point, and then back to profitability a little more, but every time less and less until its no longer profitable to mine with electricity price above 1¢ the kw/h.

A miner who fails to see this and keeps expanding like crazy instead of diversifying into different income sources or thinking in shrinking operations and going renewable energy (now when they can), are going to get hit hard. I can imagine some Chinese and Russians getting burned by this...

This is going to return to hobby miners, like those who don't mind wasting money running a few miners, or those miners who invested in renewable energy sources now when it was still profitable, instead of burning all their money in more miners or other energy wasting ideas (everytime you expand, you need to spend more and more in infrastructure and climate control).

You see, its like the Austrian school of economics. The best thing you can do, is do nothing. Don't intervene.

Head in the Sand mentalities , just means you get shot in the arse.

The fact that Pooling PoW resources allows miners to get a more continuous flow of coins that mining alone is the problem.
Which is why no matter the energy expended or if the miners are hobbyist or not,
as long as they divert their resources to a few pools, those Pool operators are holding the keys to a 51% attack.
Meaning the whole community is Trusting a few Pool operators to stay honest.