Well but if the miners on that pool can simply change the pool they mine for (and that is the case) then how does this cut off 5% of the network. Isn't it just that the hashing power moves to another pool?
Agreed. The only way that the network would lose percentages of hashing powers would be if BTC Guild operated their own mining equipment and then chose to shut this down. Otherwise members will only switch to other mining pools.
However, I think they're giving up too easily in this case. If they're profitable, and have amassed some funds, the first thing I would've done if I was them, if they truly believe in the concept of bitcoin, and are not just into it to make money, would be to move operations abroad. They have all the source code and knowledge, so they could establish themselves offshore, and in addition it would be possible to renounce their US citizenship to make their stance.
There's always the negative and positive consequences of every action, and if they chose to give in now, one can only assume that they chose that option, because it's the option that they think is best for them.
In my view however, although I don't at all like the regulatory environment that seems to become a reality, it's not the regulations that is shutting them down, but rather they're shutting themselves down because they can't or are unwilling to adapt to the new reality.
Heck, surely, if I personally had funds to set up shop offshore, and had to leave my current country because of regulatory uncertainty, I would do so in a heartbeat. However, if I did not believe so much in Bitcoin, I would rather shut it down and jump into any other business where I could make money.
As it's hard to know all the reasons why BTC Guild is deciding to shut down, pointing to the govt. and saying it's their fault we need to stop our business operations, is in my view giving up a little bit too easy.
They considered the option of moving abroad. It would require personal sacrifices they were unwilling to undergo.
When Bitcoin people had to choose between Bitcoin and Apple iPhones, they posted
videos of shooting holes in their iPhones this February, BC.info is back on the iPhone that June.
The choice is what country to live in is somewhat more nuanced than which brand of phone to use.
this is going to be fun, time to start encrypting lolcatz memes everybody! 