OMIGOD. Why wasn't I informed of this? I want Blockstream on the line right now for me refund.
"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."
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.
The Chinese government won't confiscate all the mining farms to do a 51% attack. It would give people a bad impression of them. If they were to take any action against bitcoin or the farms it would be to make mining illegal in China and outlawing the possession of bitcoins. They already banned/unbanned bitcoin multiple times and I don't rule out them banning/unbanning it again, but I don't think it's likely.