Post
Topic
Board Speculation
Re: The BTC price is too high for it's current security model
by
r0ach
on 29/07/2014, 11:27:03 UTC
Again you post arguments based on your premises but not on hard facts.

Your premises seem to rely on the assumption that Bitcoin will live forever, and that any disruption to the block chain is only temporary and greedy miners will sort things out from there.  My premise is that the centralization of mining pools will be an ongoing issue that provides so large of an attack vector, that it's inevitable central governments will impose their will over how the protocol functions, either getting rid of it outright, or turning it into governmentcoin.

For example, let's say all western governments suddenly said, "sorry, you can't mine anymore because you could be processing financial transactions for terrorists".  Various third world Asian governments would probably follow suit as well.  Mining would suddenly be a crime in most places.  You might end up with only small amounts of hash rate in obscure places like Bulgaria.  There would be no real security for the network since overpowering it's hash rate would be trivial.  Price would go down to nothing, market cap would be nothing, nobody would use it.

You seem to ignore the obvious fact that if governments have any opportunity whatsoever to regulate, manipulate, or screw something up, they will.  The giant mining pools have to go or Bitcoin has no future.  As for your claim of me "shilling" for a specific altcoin, my point has nothing to do with altcoins.  My point is that you either have to remove the giant pool mining from PoW, or use PoS and utilize reputation as a finite resource to fix most of proof of stake's current issues.