billyjoeallen
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billyjoeallen
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February 17, 2016, 02:55:48 AM


"There is general agreement in the Bitcoin community that the system must remain decentralized to prevent the possibility of any company or government controlling the currency."

So we decentralize by putting three quarters of our mines in one government's jurisdiction? 

Why am I the only one apparently concerned by this? Everybody cool with Chinese government's hand on the kill switch?

... at which point a HF does become necessary and a new POW algorithm will be adopted, something more centralising-resistant.

>"more centralising-resistant." Huh
you know why mining is consolidating? (hint its not centralizing)  It's because efficiencies in algorithm processing are being horded by the ASIC fabricators. As this technology democratizes (natural market competition) mining consolidation will biggin to diversify. It's a lack of understanding that leads to the mental shortcut that mining consolidation can be projected in a linear fashion until there is one cartel.  

Making the treat to choose a new PoW algorithm is an attack on the very incentive needed to motivate investment to grow and secure the network.  

I completely agree with this. What is needed is not less mines in China, But more mines outside of China.  It should worry all of us that this isn't happening to any meaningful degree.  Electrical power is 2 cents/kilowatthour in Eastern Washington, right outside of Microsoft's back door, so why are we letting the Chinese dominate mining?

I'll tell you why: The few American chip makers in the space like 21 are indeed hoarding the chips. This is a huge mistake, because they are onboarding all the risk. Sell miners and make money or keep them and mine. And then double down again by keeping the coins instead of selling them.

You may be good at speculating/trading
You may be good at making ASICS
You may be good at mining

But the chances are infinitesimal that you can be good at all three very difficult, competitive and specialized skills. 

i hate to break it to you, but fear of the chinese government confiscating all the mining farm in order to attempt a 51% attack is an irrational  fear.

short of this highly fantastic sanario, i see no problem having majority of hashing power where the majority of poeple on earth live.

I have no problem with the Chinese. If mining was distributed between Hong Kong, Taiwan, Singapore and Mainland China, this wouldn't be an issue at all, but the mines are all within a single political jurisdiction.  That's a major problem.  Censorship resistance isn't the ability to say whatever you want because the guy in charge lets you. It's saying whatever the hell you want because nobody can stop you. 

Worse case scenario is not that China cracks down, but that Bitcoin is such an ineffective tool to achieve freedom that they never need to crack down. That should worry us a lot more.

If Bitcoin ever becomes what you and I hope it becomes, then it will be a real threat to TPTB in China and they will have the means, motive and opportunity to stop it if more than half of all the mines are within their borders. There is absolutely no fucking way that Bitcoin can achieve major currency status without either being fought or co-opted by the State.  That is inevitable and right now we have no plans to deal with it.