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    Author Topic: Gold collapsing. Bitcoin UP.  (Read 2032335 times)
    TPTB_need_war
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    May 31, 2015, 11:07:32 AM
    Last edit: May 31, 2015, 11:34:47 AM by TPTB_need_war
     #25161

    You are wrong about centralization. There is not a general tendency towards centralization. Centralization is the tool of the violent.

    I don't see either your technical refutation of my technical analysis of why Bitcoin is centralizing. The logical implication you intended for your last sentence is vacuous or incomplete articulation (care to elaborate?).

    Eventually, in your own ability to make things happen.

    Well I agree that there is a reasonable chance the free market will overcome, e.g. with altcoins. I am just arguing Bitcoin is not the total solution. I have also said I support Bitcoin as it broadens the capital base in this crypto economy.

    You make some good points, and bitcoin is not a divine force. But the invention solved the single problem that has plagued cryptocurrencies since the invention of public key cryptography in 1978. For 30 years, people have tried to apply it to make a practical crypto money system, and satoshi solved the puzzle.

    Not only that but "he" implemented it, which I assume you agree is the more important accomplishment.

    Mining is a competitive business with a very low barrier to entry.

    You can try to improve it, and the market will choose the best systems. My bet is on bitcoin.

    The last part of the first sentence is a very astute point. PoW is how we can widely distribute coins competitively with very low barrier to entry (especially if the CPU is not challenged by ASICs yet).

    And the low barrier to entry is also a salient point  (but not the only requirement) for sustaining decentralization. On the second sentence I believe I stumbled onto a solution to the puzzle which is a radical improvement that lowers the barrier to entry much closer to 0 and foils entirely the 21 Inc business model.

    As one of my supporters wrote to me today in Bitmessage, "release the tech, then they will come to secure their spot" (paraphrased)

    I am still not sure though. I need to spend more time to evaluate what I think it realistic (not the design, but the logistics of producing a coin and avoiding trouble with the law).

    Anyone sacrificing a part of the profit, however small, for something that is not just finding blocks and include transactions, will lose. A resourceful rogue force ready to sacrifice a large sum of money to change its direction, will also lose, because he is dependant on the users following, and they will follow only if the new money is better for them.

    You forgot the 21 Inc model makes them the lowest cost supplier of hash cycles and the users have the incentive of discounts on heating devices and smartphones. That scales to the point that they have ~100% of the hashrate. Economies-of-scale and access to massive amounts of capital and cartel alliances (e.g. marriage with Samsung and telcoms) required to pull this off means they won't have any competition.

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