As I'm diving deeper into crypto, I have found a fatal flaw. The value of the bitcoin is derived from the power the network creates. The hashing, is basically the decentralization of the currency. As the crypto becomes more available it means halfing has occurred more frequently. This makes Bit coin for example more energy intense to mine. It also decreases the rate of which one can accumulate bitcoins.
As the hashing rate is reduced, transactions will slow.
People will do with crypto rigs as they do with gold rigs, set up shop where the paydirt is, and not try to get every last ounce. Ironically, the thing that built the network and kept it running, is the bitcoin mining. Bitcoin IS the fuel that runs the rigs. When they leave for another currency, that leaves less hashing power to be devoted to the mining bitcoin. The paradox, is the amount of "currency" available to be circulated won't have the hashing power to maintain the network transactions.
When the last bitcoin is mined, there will be no more hashing power dedicated to the currency.
Am I missing something?
Topic: Is there a fatal flaw in bitcoin? - page 2. (Read 244 times)
Jump to: