Quote
Step 1) Buy 3% of the hash power (secretly)
Step 2) Set up a mining pool that merge mines Namecoin (or other alts) and auto sells for BTC, thus charging a negative fee
Step 3) Once your pool has enough hash power (3-4%), point your secret hash power at top mining pool
Step 4) Don't submit winning hashes, reducing the REVENUE of competitors by 3%
Step 5) Continue to subsidize your pool with BTC earned from competitors pools
Step 2) Set up a mining pool that merge mines Namecoin (or other alts) and auto sells for BTC, thus charging a negative fee
Step 3) Once your pool has enough hash power (3-4%), point your secret hash power at top mining pool
Step 4) Don't submit winning hashes, reducing the REVENUE of competitors by 3%
Step 5) Continue to subsidize your pool with BTC earned from competitors pools
Yes. It is possible.
But what it the long-time expected result?
Do you want to gain all 21m bitcoins?
OK, I suggest another idea:
1) Lets create a fork with 100% premine.
2) Profit!
Voila! You have all hash power and all coins without any initial spendings.
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Update: what country are you from? compare your steps 1...5 with the history of your country
No, I think the result is either to do a 51% attack on Bitcoin or build a big mining pool like Ghash, for profit, from a small start using this tactic.
Previously I'd been lead to believe someone would have to get control of 51% of the hashing power which is very expensive.
The above example makes it seem you could achieve the same result with 3/4% of the hashing power in a fairly short period of time.
Which is why I'd like to debunk it.
(I don't get the country analogy, sounds interesting, but it went over my head I'm afraid.)
