You have provided no solution for defending against a rogue NSA that will shutdown an anonymous currency. Politics is not going to be a solution for what is coming down the pike after 2015. The governments are planning to take everything down with them.
Your arguments against slightly (slow creep) higher debasement than was planned is irrelevant, as I have explained numerous times that debasement is good and required for an economy to grow. It is centralized debasement that is bad, where one group can manipulate the rate of debasement. No one can drastically alter the rate of debasement of Bitcoin or any PoW.
Yeah we have to stop ASICs or as I proposed, make ASICs available to everyone, because the major cost is the DRAM, not the ASICs in my proposed PoW algorithm.
So you want to continue your silly dividends of paying the debasement back to ourselves again. Accomplishes exactly nothing.
I have a design to defend against government packet filtering. Custom hardware won't help them, they will need to buy as much DRAM as the public has, and the public is going to buy it all up with my plan. The government can't make DRAM out-of-thin-air. DRAM plants require massive capital investments and time to ramp up. The government can force mining pools if the pools are P2P anonymous.
For a currency that wants to be anonymous, then if the NSA is attacking the currency in order to kill it, they could careless about profiting and the anonymity feature would also protect their identity. Merchants deal with charge-backs because the customer is not anonymous. Big difference with anonymous accounts and being unable to know which accounts to filter on past chargeback history or inability of the customer to provide the matching data on record for the card, i.e. the CVV2 code, name, and address. Customers can't get chargebacks these days without a valid reason.
It only takes a small amount of double-spend activity to send everyone running from the currency, because they can no longer trust to receive it in payment. There would be a stampede to get out, causing a waterfall crash in value.
The attacks from possessing a significant portion of the PoW difficulty are not limited to double-spending. The adversary can delay transactions. Assuming 10 minute blocks then with 90% of the difficulty, the adversary could with delay by 10 minutes 90% of the time, 20 minutes 81% of the time, 30 minutes 73% of the time, 40 minutes 66% of the time, 50 minutes 59% of the time, 60 minutes 53% of the time, ... to 2 hours 28% of the time.
Your prediction markets will suffer from the irrationality of the masses, as well any voting system is always vulnerable to manipulation.
I don't want to lobby the government. I want take away their cookie jar and shut them down. We can't negotiate with crooks and sociopaths. We have to remove what gives them their power. For as long as they can feed debt and socialism to the masses, the masses will be fooled.
http://armstrongeconomics.com/2013/09/08/agencies-never-obey-the-law/http://armstrongeconomics.com/2013/09/08/are-they-going-after-safety-deposit-boxes/http://www.nestmann.com/civil-forfeiture-of-cash-it-could-happen-to-youProving that your cash is connected to a crime is surprisingly easy to demonstrate. That's because 97% or more of cash circulating today contains tiny concentrations of narcotics residues—primarily cocaine. All police need to do is to bring in a drug-sniffing dog to inspect the cash. If the dog alerts, police seize the cash. And, under civil forfeiture rules, it's up to you to prove that the cash has a legitimate origin.
Consider the case of Emiliano Gomez Gonzolez. During a traffic stop, Nebraska state troopers asked Gonzolez for permission to search his vehicle. During the search, the troopers found bundles of currency totaling $124,700. Based on a dog sniff, police seized all the money.
Gonzolez contested the forfeiture in court. Prosecutors neither convicted nor accused Gomez or any of the other owners of the seized cash of any crime. Nor did police find any drugs, drug paraphernalia, or drug records connected to the cash. Despite these facts, a federal appeals court upheld the confiscation of every dollar found in the vehicle.
In conclusion, the marginal utility of increasing the difficulty of PoW is roughly constant until it reaches the size that governments can't possibly overcome. Since it is difficult to know what that level is, and since the harm that governments do now is much worse than 5% per annum debasement, and since we are paying it to ourselves, since most of us will be able to mine with the improved PoW algorithm, then it is a no brainer. Not to mention this will fund development of more efficient and decentralized energy as I have pointed out upthread, which can greatly help mankind.
P.S. Pedantic correction to the facts in your article, control of any higher than 50% of difficulty can mount an attack, doesn't require 51%.
P.S.S. I am glad you are continuing with your wrong design, it leaves the market wide-open for me.
