And laughing all the way to the bank!

I stopped right there, said to myself, another idiot telling the world about it.


Only dumbfck mix up tx processing with bitcoin supply.

Yes, when block reward is gone, that number may drop dramatically, but what then? what about 51% attack? Right now a PoW 51% attack on Bitcoin would cost hundreds of million dollars too, if the block reward is gone, then transaction fees better make up for it, otherwise a 51% attack would become very cheap.

Now if the transaction fee does make up for the block reward, then we are still back to to the original problem, hundreds of millions of dollars bleeding from the community each year, and paid to hardware vendor/electric company.

This is the paradox of PoW, you can't make it too cheap for 51% attack, but when you make it expensive, you bleed money from the community and eco-system.

So my point is, currently the block reward is what's keeping Bitcoin security safe against a 51% attack, that's why it should be included in the cost of transaction.

You're too short-sighted.  If Bitcoin is still around by the time the block reward is insignificant to miners, then it's going to be worth a lot more than it is now, and a lot more transactions are going to be pushed through it than are pushed now, upping the reward per block.  Transaction fees aside, think about it - the price only has to DOUBLE in 4 years to maintain the same value of reward to miners.  In the last 4 years, the price has gone from $0.0025/bitcoin to $500/bitcoin.  That's 200,000 times the current value. Now certainly, the value of Bitcoin cannot continue rising indefinitely, but one thing is for certain: if Bitcoin is successful, then block rewards will continue sustaining mining for decades to come.  If Bitcoin ISN'T worth a lot more by the time the block reward is insignificant, then the Bitcoin experiment effectively failed, because the current value isn't enough for a significant number of people to be using it for transacting and storing value.

And you've still failed to convince me how money is "bleeding" from the community.  What does that even mean?  What do you expect miners would be doing with their money if mining wasn't available?

Finally, what's the correct level of security that Bitcoin needs?  A 51% attack would be detrimental, but it wouldn't mean the end of Bitcoin.  There are ways to counter and mitigate it, and the worst that would happen is a suspension of transactions until the attack is resolved.  So, what's to say that $10M of attack prevention isn't enough?  Currently it would cost somewhere in the hundreds of millions, but is that really necessary?  I'd be interested to see some analysis in that regard.

If Bitcoin eco-system is to become that big, say 1 Trillion, then the mining cost MUST also rise to match it, otherwise the incentive to 51% attack the network is too high, since it would be cheap to do so.

Why money is "bleeding" from the community? I thought it's pretty clear. Someone is paying for the hardware and electricity, correct? on the surface, the miners are paying. But then the miners gets paid by block reward, which they probably immediately sell to cover their cost. Those who buys these newly minted Bitcoin are paying. The existing Bitcoin holders and eco-system did not gain any value from this process.

But with a DPoS system, since there's no need to pay hardware vendor and electric company, the money is used to directly purchase the currency, and the existing currency holders and eco-system all benefit from this inflow of money.

I think you could think of it this way. If it cost $1B to attack/cause huge trouble to a country like say Slovenia with no repercussion, no country in the world would do it, because it's not worth it. But now if I tell you if you spend $1B, and you could attack/cause huge trouble and loss for the United States of America (and still with no repercussion), I would bet at least several dozen countries in this world will do it in a heart beat. My point is, as you become large and powerful, then the cost to attack you MUST also rise, it can not be cheap. Otherwise, someone WILL attack Bitcoin, just so he could say I did it, and if Bitcoin does get that big, I think the existing established banks/creditcard/governments have PLENTY of incentive to do just that.

Now the advantage of a PoS system, is that it's naturally resistant against a 51% attack. To attack a PoS eco-system, you must have resources several times the value of the eco-system, otherwise, you WILL fail. On the other hand, to attack a PoW system, you just have to buy enough hardware to overwhelm the current miners, which currently cost about only 10% of Bitcoin eco-system value. This is why there has been exact ZERO successful 51% attack on any PoS alt coin, while plenty of PoW alt coin has been attacked to death.

A 51% attack is not just a mining pool getting 51%.  If some entity got 51% and mined secretly all past transactions could be wiped out from the block they started mining.  It could mean weeks or months of transactions could be wiped out.  If someone wiped out the last 6 months of Bitcoin transactions I think that would kill it.  The cost analysis that I have seen calculated a price based on buying equipment from vendors.  A 51% attack like this would mean the entity would make their own hardware.  If they had control of places that manufacture chips that would make a big difference with the cost.  I don't think it would happen but it is not completely out of the question.

Satoshi client have checkpoints, (9.3.1rc at block 295.000 I guess) so you cannot publish 6 months old longest blockchain, most Bitcoin clients will simply reject it.

Do you have more info on this?  Are checkpoints made every so often?  If someone had a 51% starting today how long could they go before a checkpoint?