.jpg "The concentration of mining in America poses a major threat to bitcoin Blind patriotism, which promotes greater centralization of America's mining, is an organizational trap. Since the mining ban came to China There was a massive migration. Bitcoin retail rate to the United States.") |
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The concentration of
mining in America poses a major threat to bitcoin
Blind patriotism
which promotes greater
centralization of America's mining, is an organizational trap.
- Since the mining ban came to China
- There was a massive migration.
- Bitcoin retail rate to the United States.
There have been many
accounts and pressures from pro-American bitcoin
workers to continue to attract more retail to the United States, including pressure to create regulatory environments favourable to miners here in North America.
This was done under the assumption of historical strength of American property rights, which is a large part of why American capital and equity markets are the largest in the world.
This is a major miscalculation and something that, if successful, will have a significant negative impact on bitcoin in the long term.
- The whole game theory about bitcoin mining
- security is decentralization and distribution.
From day one
It was determined that the majority (51%) or more of bitcoin's retail rate
- You can act maliciously in a way that degrades
- Or it breaks the security of the entire system.
- They can exclude blocks from other miners
- It prevented them even from using the system to generate income from bitcoin.
They can exclude
transactions from parties they do not want to deal with
again excluding blocks
from miners who process such transactions from blockchain.
They can selectively refuse to properly process the closure of Lightning channels, and can block interconnections
They can break the system's entire control resistance and undermine the security of not only the base layer but any secondary layer built on top of it to expand the system.
The miners themselves
who voluntarily decide to act maliciously
are not the only form taken by this particular threat.
They have to set up their operations somewhere, which means - unless they are able to operate successfully illegally and invisibly off the grid
It is widely impractical - they must subject themselves to the laws and regulations of the jurisdiction they have established.
Much of the network's total retail rate in one jurisdiction presents a security risk on the network as a whole.
Think about
how much retail rate is currently operating in the United States
- The amount of this is from public companies
- registered shared hosting facilities, companies that
- can be easily located and people
who have an adequate retail rate at home with an energy signature that is easily determined by the utility company.
All of this fragmentation rate is subject to enforcement action by the United States Government to varying degrees of difficulty.
Everything except individual miners can probably be accomplished significantly within one week.
As of December 2021
the Cambridge Bitcoin Electricity Consumption Index
showed 38% of the network's retail rate as found in the United States.
This is 13% of the minimum necessary to engage in disruptive activity on the network. Bitcoin customers should not be encouraged to take action and legislation to turn this around near this turning point.
The United States Government is
the world's largest empire. We literally manage the world's reserve currency.
Which is already facing a major problem in the world only because of the political fallout in response to decades of our engagement in a foreign policy that is almost entirely centred on benefiting America at the expense of hurting countless other countries in the world.
Bitcoin poses another existential threat to that reserve currency and to the benefits of the rest of the world on which it depends.
Things are constantly drawn as if America is a bright beacon of freedom in the world that will embrace bitcoin because of this
In some respects
America is that lighthouse
but in other ways it is eerily similar to China's totalitarian
state under the thumb of the Chinese Communist Party.
- The US government has every incentive to
- attack or seize bitcoin that China does
- more in case of the threat bitcoin poses to the US dollar.
Bitcoin is a fundamental threat to the world order created by the American Empire. If the government sees an opportunity to neutralize this threat, they will take advantage of it.
Carrying out such attacks is not a simple intellectual exercise where the government has no idea or plans how to do anything either.
In 2016, MIT designed a system called Chain Anchor.
The entire objective of the system is to literally carry out a 51% attack to permanently neutralize bitcoin resistance to censorship
Consider now the Financial Task Force regulations that have been slowing down and are slowly being rolled out over the past few years. Travel rule.
Almost every major exchange in this ecosystem is actively working on protocols to allow them to share personally identifiable information with each other
or at least commit to it
- Whenever they engage in a transaction on
- behalf of one of their users you go directly to
- another exchange. This will not be subscribed to
this is a mandate
even worse than the proposal in Chain Anchor.
European politicians even danced on the line with public proposals to expand these KYC requirements to include non-custodial portfolios.
Consider now the current dominance of
ESG narratives regarding bitcoin mining.
There are conversations about (and regulations you apply literally in some places) preferential treatment of renewable-powered mining.
Generally speaking
- These measures involve economic incentives in the form of operations' tax exemptions and subsidies.
- These kinds of non-bitcoin economic deals, and even possible explicit payments in the future
- It is an accurate form of bribery for miners.
- They are economically motivated to behave in a specific way outside the Bitcoin Protocol itself.
These actions are slowly normalizing the idea of miners' work with such external protocol incentives in mind.
Public mining companies do
not get such deals without identifying them
Consumers don't get shelf space in a shared hosting facility without KYCing themselves. All this is slowly creeping requirements of Chain Anchor.
All that remained was the necessary retail rate required to enforce the use of bitcoin on the entire white list and exclude incompatible miners from the system, and Chain Anchor "effectively neutralized and converted bitcoin into a permitted system on the white list.
At that point, there is no choice but to hope that new miners can be produced and brought online to overcome this attacking majority, a distant opportunity given how centralized ASIC's design and production actually is.
Otherwise
The only option is to change the PoW algorithm.
This :
I think, even in the face of such an attack, is highly unlikely.
- It raises questions about the idea of a fully neutral system
- and randomly destroys the value of
- both malicious and non-malicious miners' investments.
Also :
- given once again the centrality of ASIC's production
- once this attack is proven to be nothing possible to
- prevent it from being done again.
Putting the previous generation of ASICs in a fork
also discourages honest miners from trying again.
What happens if
another fork happens because the attack is pulled back?
They risk again dumping a large amount of capital into hardware investment that becomes worthless by responding to the attack.
I don't think bitcoin can recover from such an attack. People will absorb it, appreciate it for what it is simply as a rare economic asset free from resistance to real censorship, or it will fail altogether.
- If a socially coordinated whack-a-mole game is necessary
- To maintain its work in a manner resistant to censorship
- They completely undermine the value of a neutral control resistant system that
- does not require such social coordination of action.
- Either you die, or you limp off as a rare neutral asset.
In order for bitcoin to
truly function as a censorship-resistant system
you must avoid liquidation in this situation in the first place.
Bitcoin workers should not cheer for such a retail focus in one jurisdiction, and try to encourage it further by pressuring industry and politicians to make things more convenient for miners to concentrate in one place.
Not thinking about patriotism
- The overemphasis on "Making America Great Again"
- This way is not a good thing for bitcoin
- It's actually very dangerous for her.
If bitcoin is going to work, it has to work as a safely distributed system around the world, not too concentrated in America because "America is great."
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