This is not new, its always been the way since ASIC came on the scene, with the centralisation beginning with mining pools.
But the flaw is in the original design, as above there was only naive ambition for the future of bitcoin. Maybe Satoshi simply didnt know about the efficiency of GPU mining and the arms race that would lead to? Though surely the idea that a specialist miner could have be conceived and designed against.
Topic: Are BTC and ETH More Centralized Than Most Realize? (Read 154 times)
He failed to anticipate mining pools consolidating mining power.
This is very true, but unavoidable. The only difference between Bitcoin and Ethereum is.... drum roll... Vitalik and the founders
are known to the authorities. They can be corrupted, bribed, threatened or influenced to do governments bidding. Putin has
already had talks with Vitalik, but he will have a hard time reaching Satoshi.
Vitalik Buterin and his boyfriend Peter Thiel have done more to hurt bitcoin in the last couple of years than all of the governments of the world combined.
He failed to anticipate mining pools consolidating mining power.
This is very true, but unavoidable. The only difference between Bitcoin and Ethereum is.... drum roll... Vitalik and the founders
are known to the authorities. They can be corrupted, bribed, threatened or influenced to do governments bidding. Putin has
already had talks with Vitalik, but he will have a hard time reaching Satoshi.
Bitcoin is centralized, and always will be, because the great and powerful wizard of oz Satoshi was naive enough to believe bitcoins security system would always be distributed between individuals.
He designed bitcoin to be mined on a cpu by people using the client software. He failed to anticipate upgrades to the client software that would remove the mining feature.
He failed to anticipate ASIC mining.
He failed to anticipate mining pools consolidating mining power.
He failed to anticipate big business and Wall Street taking over bitcoin by hoarding millions of coins for the futures market.
He knew very little about economics and political science, didn’t understand that rampant deflation is bad and couldn’t predict how governments would respond to citizens attempting to usurp fiat controls.
I frankly think he abandoned bitcoin due to his embarrassment over failing to foresee where his creation was headed. Like all idealistic dreamers, he deluded himself into thinking that average citizens are more than a herd of cattle willing to be controlled.
He designed bitcoin to be mined on a cpu by people using the client software. He failed to anticipate upgrades to the client software that would remove the mining feature.
He failed to anticipate ASIC mining.
He failed to anticipate mining pools consolidating mining power.
He failed to anticipate big business and Wall Street taking over bitcoin by hoarding millions of coins for the futures market.
He knew very little about economics and political science, didn’t understand that rampant deflation is bad and couldn’t predict how governments would respond to citizens attempting to usurp fiat controls.
I frankly think he abandoned bitcoin due to his embarrassment over failing to foresee where his creation was headed. Like all idealistic dreamers, he deluded himself into thinking that average citizens are more than a herd of cattle willing to be controlled.
It wasn't like that before. But when they entered the american exchanges, they became more centralised. But if you are not living in us, there won't be a problem for you.
What is the reason why if its enter the american exchange then it will be more centralized? I think bitcoin and etherium are not centralized.
Well logically this is not unusual. This the way of the world. The first movers are typically those who hold the power (centralized power).
It wasn't like that before. But when they entered the american exchanges, they became more centralised. But if you are not living in us, there won't be a problem for you.
NO. They started becoming centralized the day we started using exchanges and KYC became mandatory everywhere.
You know your government is getting all the details regarding everything you do related to Bitcoins, from your trading history to your deposits/withdrawals that you do, if you're doing it using an exchange as these exchanges give our KYC documents and history to Government to keep compliant with their Anti-money laundering rules. You know that, do you?
I am not sure that there is anything much to see or worry about here. Some of the mining is concentrated for sure, but miners are only one constituent in the eco-system. If the miners get out of check, economics will bring them back in line.
Just an FYI. I've always heard rumors, so this was an interesting read.
https://www.financemagnates.com/cryptocurrency/news/study-shows-bitcoin-ethereum-centralized/
https://www.financemagnates.com/cryptocurrency/news/study-shows-bitcoin-ethereum-centralized/
The mining is centralized, but hopefully when Ethereum goes into POS, then this will greatly decentralize the currency.
It wasn't like that before. But when they entered the american exchanges, they became more centralised. But if you are not living in us, there won't be a problem for you.
I disagree. Centralization means higher risks on many levels, which can affect the worldwide market. Besides mining and exchanges do not necessarrily go hand-in-hand.
It wasn't like that before. But when they entered the american exchanges, they became more centralised. But if you are not living in us, there won't be a problem for you.
Just an FYI. I've always heard rumors, so this was an interesting read.
https://www.financemagnates.com/cryptocurrency/news/study-shows-bitcoin-ethereum-centralized/
https://www.financemagnates.com/cryptocurrency/news/study-shows-bitcoin-ethereum-centralized/
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