Topic: What if governments make Bitcoin centralized? - page 7. (Read 1084 times)
I think that if every country accepted Bitcoin as a means of payment, it will be still distributed around the world that means that it will be decentralised. The danger is that if all countries accepted Bitcoin and one country, for example, US seized more than 50%, it will mean that US government really take over the world. As they will be able to control process of transferring money in all countries.
Not the way you imagine, but pause for a moment and think, isn't Bitcoin somewhat centralized even today? I do not mean exclusively where most crypto miners are located (which is difficult to determine precisely), but the fact that several globally positioned crypto exchanges hold several million BTC in their possession. Governments can always reach for a measure to seize all that BTC, for some reason they can invent at any given time.
Exactly. There are many big players holding a large stake in Bitcoin today. This brings inequality, which goes against Blockchain technology's value proposition. The more centralized exchanges hold large stakes of Bitcoin, the less-decentralized the cryptocurrency will be.
A contingency plan would be to increase Bitcoin's total supply. But that would break Bitcoin's scarcity. Mining pools introduce another risk of centralization, as big miners gain all of the benefits in the long run. Solo mining is a much more decentralized option, but extremely unprofitable to perform on Bitcoin. Imagine what would be of Bitcoin if governments create their own mining facilities. A large portion of the network's hashrate will be controlled by them, effectively putting decentralization at risk. I hope that doesn't turn out to be the case in the long run, in order to provide censorship-resistant money to the world. Just my thoughts
the answer is impossible i think since at first bitcoin decentralized and form the hype right know more people adopting it and more node spread controling bitcoin will impossible you need to create super node with 51% is crazy amount of money and off course the electricty it self
I think it completely destroys the purpose on why BTC was created in the first place.
Satoshi imagined BTC as a form of alternative currency where it eliminates the need for a third-party consensus in making payments. By making it centralized, it will function relatively the same as fiat which would destroy his vision on why it was first originally created. The reason also on why BTC's price is so high in the market is due to its decentralized factor where only the blockchain is the source of its transactions.
Satoshi imagined BTC as a form of alternative currency where it eliminates the need for a third-party consensus in making payments. By making it centralized, it will function relatively the same as fiat which would destroy his vision on why it was first originally created. The reason also on why BTC's price is so high in the market is due to its decentralized factor where only the blockchain is the source of its transactions.
Bitcoin cannot be centralized by any government in the world because they can only centralize someone they have power over ad the last time I checked the government has understood that Bitcoin is inevitable and cant be control by them. However, they can only manipulate or regulate the centralized exchange site.
A government can control Bitcoin and it is easier if they regulate the market and any exchange running in that country will provide ever transaction details to the government, so it is not a strange thing. They might not control the entire market but they can control what is happening with the transactions in the exchanges that is registered with them.
Y’all should stop with all these one currency crap please. By the way, nothing like what you have said here is going to happen. If the governments has any plans at all, it is nothing more than creating their own digital currency and forcing people to stop making use of decentralized cryptocurrencies such as bitcoin. And in a few countries, they are already doing this; trying to stop people from making use of these cryptocurrencies, while they release their own digital currencies, such as the Chinese digital Yuan.
As for Bitcoin, there will be nothing like becoming centralized, except for the centralized exchanges who would be a tool for the government to an extent. But that doesn’t mean that bitcoin is centralized, it still remains decentralized.
As for Bitcoin, there will be nothing like becoming centralized, except for the centralized exchanges who would be a tool for the government to an extent. But that doesn’t mean that bitcoin is centralized, it still remains decentralized.
I think it is possible to see more and more government of a country considering adopting bitcoin in the future and this may have been discussed many time before but I believe only a few percent of countries in the world would agree. But we should also know that government will not be able to fully control the bitcoin network just because they want to turn it into a centralized asset. The government will create its own fully centralized digital currency instead of legalizing and adopting bitcoin as a legal currency.
I can give an example that currently there is a discourse between the government and Bank Indonesia to create their own digital currency which can then be legalized as a means of payment while they will still prohibit bitcoin and other cryptocurrencies from being used as currency. This idea will probably begin to be adopted by many other countries because the government know bitcoin will not be easy to control. So I'm not so worried about the loss of bitcoin decentralization just because of this increased adoption.
I can give an example that currently there is a discourse between the government and Bank Indonesia to create their own digital currency which can then be legalized as a means of payment while they will still prohibit bitcoin and other cryptocurrencies from being used as currency. This idea will probably begin to be adopted by many other countries because the government know bitcoin will not be easy to control. So I'm not so worried about the loss of bitcoin decentralization just because of this increased adoption.
I don't think that Bitcoin can be centralized by any government.
Bitcoin cannot be centralized by any government in the world because they can only centralize someone they have power over ad the last time I checked the government has understood that Bitcoin is inevitable and cant be control by them. However, they can only manipulate or regulate the centralized exchange site.hero member
Activity: 2660
Merit: 651
Want top-notch marketing for your project, Hire me
I don't think that Bitcoin can be centralized by any government.
Bitcoin cannot be centralized by any government in the world because they can only centralize someone they have power over ad the last time I checked the government has understood that Bitcoin is inevitable and cant be control by them. However, they can only manipulate or regulate the centralized exchange site. 
if bitcoin becomes the world's currency then that's pretty crazy, which is a good idea, but we have to realize to be like that and what we hope to be requires a very hard and rigorous process. For that we can hope and declare something crazy for the future, but we should not forget the process..! I think there's some hope for bitcoin to be centralized, but it's impossible in my country, because they still think bitcoin is the enemy of state banks, so it's very difficult.
Dude, you need to control your emotions and don't think it's weird to be the currency of the world with bitcoin, this idea has been used on a very small scale for a long time but it is very fragmentary and now we are just assembling these small parts together to form a full scale and launch before the world. The obstacles are still the decision power belongs to the user or the government, will be in the form of centralized or decentralized, and most of us are fighting for the decentralized master, less in favor of bitcoin's centralization due to the brutality of governments in their regulatory regime
This is the scenario that we have been talking about for years.... and I think the sentiments and thoughts about that was that if this might happen, then people will sell their coins and move over to another Alt coin... or develop a new coin that will suit the need of the people moving to the new coin. 
These governments will have a very stormy relationship with the tax payers, if they have to continuously buy more and more hash rate to "dominate" the mining power of all these coins.
These governments will have a very stormy relationship with the tax payers, if they have to continuously buy more and more hash rate to "dominate" the mining power of all these coins.
I believe at the end cryptocurrency will dominate the governments' power. Since civilization starts we made the wrong choices about financial control mechanism and I believe with the nakamoto we found the correct path. Thanks to nakamoto, he/she/they gave us the real freedom. This freedom which nakamoto gave is like double side sword. If you want to control it you will damage yourself. Instead of try to controlling; if we use it how much we need it, we will be totally free 
Have you ever thought about Bitcoin becoming centralized someday? The ever-growing mainstream adoption of Bitcoin worldwide will only lead us closer to such scenario. To our surprise, El Salvador became the first country to adopt Bitcoin as legal tender. The more popular the cryptocurrency becomes, the more countries will be tempted to follow El Salvador's footsteps. Imagine governments making their own mining facilities, or even buying pre-established mining companies in order to gain a piece of the pie. If they manage to control more than 51% of Bitcoin's hashrate, the cryptocurrency will effectively become centralized. That, and the fact that they already control centralized exchanges is a very alarming situation for the future of Bitcoin.
Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.
What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.
I don't think this is going to happen, and that Bitcoin will get more centralized than it already is. If one country makes a big move on Bitcoin, attempting to take control over it, others will follow. Also, this will increase the demand and thus the price will rise, making taking every new bit of control more difficult, if it makes sense. Mining is in the hands of big companies, and I don't think they'll get sold to governments. Moreover, I don't see any government that would be willing to attempt taking control over Bitcoin like that and be resourceful enough to do it. So even if fiat started being replaced by Bitcoin (and that is not happening now), Bitcoin would still remain decentralized. Of course, the only way governments worldwide will be able to control 51% of Bitcoin's hashrate is if they unanimously agree on using Bitcoin is a "One World Currency". This may all sound crazy, but we cannot ignore it from happening in the future.
What are your thoughts? Will Bitcoin be able to remain decentralized for the foreseeable future? Or not? What do you think will happen if governments fully embrace Bitcoin as the replacement of Fiat? Your input will be greatly appreciated. Thanks.
[...]
To begin with, the Chinese nation has an exceptionally subtle mentality, it is a kind of closed community that has developed for several thousand years in parallel with the rest of the world. Yes, they also have corrupt politicians and mercantile people, but the Chinese first of all take care of each other. Therefore, you can forget about the long-term prospects, because what their government has done will ultimately benefit only the Chinese. I deviated a little from the topic, but it was just about strategic interests ... If China really saw an enemy in Bitcoin, we would see a lot more attacks no matter how many years ago there cyber department learned about the existence of Bitcoin.
Speaking as a southeast Asian for whom China and the Chinese are a part of out lives no matter how we want the situation to be, I agree. I always feel that the stuff I read about what the world thinks of China or how it will move/progress is a little too much like what China would like them to believe.
China has never, not in a thousand years, preferred to be obvious. Soft power, subtle advances, economic strengthening elsewhere. This is how they flex their muscle and influence.
So if they did see Bitcoin as an enemy, it wouldn't react by attacking, but by learning, infiltrating, copying and subverting.
I think that very little will change dramatically. Perhaps they will have to pay taxes, but they have been wanting to do this for a long time.
I also think that bitcoin and government will not unite. however, there are many things that bitcoin has in its possession but challenges the government.
however, if the government intends to have more bitcoins so that bitcoins become centralized, I think it's still quite difficult. given that the price of bitcoin is unstable. if the government owns 51% of bitcoin, but the rest is still very much free to trade. it will only make bitcoin like being held by the government, and the government also has the same impact as us. imagine, if the bitcoin adoption rate were to decrease because of this, it could have an impact on the price going down. and if the government has a higher percentage, then the losses received by the government can be very large. Well, the only way around this is for the government to allow bitcoin as a payment alternative, and adopt bitcoin privately.
however, if the government intends to have more bitcoins so that bitcoins become centralized, I think it's still quite difficult. given that the price of bitcoin is unstable. if the government owns 51% of bitcoin, but the rest is still very much free to trade. it will only make bitcoin like being held by the government, and the government also has the same impact as us. imagine, if the bitcoin adoption rate were to decrease because of this, it could have an impact on the price going down. and if the government has a higher percentage, then the losses received by the government can be very large. Well, the only way around this is for the government to allow bitcoin as a payment alternative, and adopt bitcoin privately.
Now, many countries around the world are starting to adopt Bitcoin as a legal tender, but many are also against it. A further concern for Bitcoin users is that Bitcoin becomes more controlled if a country can hold the 51% of Bitcoin currently circulating in the market, but achieving that in my opinion is difficult because Bitcoin mining revenue is always halved every 4 years. I think Bitcoin will remain decentralized even though many parties want to control Bitcoin but it will be in vain. Whereas Bitcoin cannot replace fiat because fiat is protected by the regulations of each country so it is impossible for fiat to be replaced by Bitcoin.
If they manage to control more than 51% of Bitcoin's hashrate, the cryptocurrency will effectively become centralized.
You either don't know what centralized means or don't know what having 51% of the hashrate means.Owning hashrate won't centralized bitcoin, they won't even be able to censor bitcoin transactions because the remaining 49% will still mine your transactions.
Besides you are forgetting that bitcoin is a global currency not only operating in one country. If one government started building up its hashrate, others will do the same too so we could essentially end up with multiple governments each owning a tiny portion of the hashrate like 10%.
Quote
That, and the fact that they already control centralized exchanges is a very alarming situation for the future of Bitcoin.
Same arguments about hashrate but additionally centralized exchanges have nothing to do with bitcoin! 
Doubt this will ever happen. There's nothing to be had in mining a coin in which its supply is almost exhausted. Plus, suppose they were successful in overpowering the network and taking control of the chain. Its value will plummet almost immediately rendering their efforts useless, or the network will just fork off and the people will recognize which is the chain that is controlled by the government and which one is not.
IMO, the government is better off creating their own coin rather than meddling with bitcoin, or any other established coin for that matter.
IMO, the government is better off creating their own coin rather than meddling with bitcoin, or any other established coin for that matter.
First and foremost, people need to understand what the word centralization is. Knowing and understanding what centralization is, will help people from believing or having an assumption that the government has any chance of making bitcoin centralized. Bitcoin will forever remain a decentralized asset and digital currency. It's quite unfortunate that people still have doubts and don't understand what decentralization and blockchain technology is all about.
Jump to: