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It's very unclear that Bitcoin's problems are a direct result of its decentralized nature.

dboreham 9y ago
Decentralized _operation_ might be ok but decentralized management and oversight seems to have not worked out. "Market Forces" don't seem to produce good architecture.
- laretluval 9y ago
  As far as I can tell the biggest problem with Bitcoin right now is the high transaction cost, which happens because it's not worth it for miners to validate transactions unless you essentially bribe them. If mining were more lucrative on its own, this wouldn't be a problem, but the reward rate for mining is hardwired. So in this case I'd say the problem isn't caused by the market but rather by the hard-coded nature of the monetary policy and the fact that there isn't a good process to change such core matters.
  - disordinary 9y ago
    No, the high transaction costs are because the blocks are too small. As the currency has grown in popularity the volume has increased but the blocks have not, therefore the competition to get your transaction into the block has grown and market forces means prices have increased because of it. Mining is incredibly lucrative.
    - em3rgent0rdr 9y ago
      Still the argument that "high transaction costs are because the blocks are too small" doesn't conflict with the argument that there is no easy way to change the code running bitcoin's blockchain, and in fact the latter would allow the former.
      - disordinary 9y ago
        It's very easy to change. You just fork it.
        em3rgent0rdr 9y ago
        No, forking bitcoin doesn't change the code running bitcoin's blockchain. Carefully re-read what I wrote: "no easy way to change the code running bitcoin's blockchain".
        disordinary 9y ago
        Of course it does, that's exactly what a fork is. Or, maybe the question is what is the bitcoin blockchain? The truth is there is no such thing.
  - deleted 9y ago
    [deleted]
Scarblac 9y ago
Its insane energy use is only because of the need for the constant proof of work to make the decentralization possible.

Decentralized _operation_ might be ok but decentralized management and oversight seems to have not worked out. "Market Forces" don't seem to produce good architecture.

laretluval 9y ago
As far as I can tell the biggest problem with Bitcoin right now is the high transaction cost, which happens because it's not worth it for miners to validate transactions unless you essentially bribe them. If mining were more lucrative on its own, this wouldn't be a problem, but the reward rate for mining is hardwired. So in this case I'd say the problem isn't caused by the market but rather by the hard-coded nature of the monetary policy and the fact that there isn't a good process to change such core matters.
- disordinary 9y ago
  No, the high transaction costs are because the blocks are too small. As the currency has grown in popularity the volume has increased but the blocks have not, therefore the competition to get your transaction into the block has grown and market forces means prices have increased because of it. Mining is incredibly lucrative.
  - em3rgent0rdr 9y ago
    Still the argument that "high transaction costs are because the blocks are too small" doesn't conflict with the argument that there is no easy way to change the code running bitcoin's blockchain, and in fact the latter would allow the former.
    - disordinary 9y ago
      It's very easy to change. You just fork it.
      - em3rgent0rdr 9y ago
        No, forking bitcoin doesn't change the code running bitcoin's blockchain. Carefully re-read what I wrote: "no easy way to change the code running bitcoin's blockchain".
        disordinary 9y ago
        Of course it does, that's exactly what a fork is. Or, maybe the question is what is the bitcoin blockchain? The truth is there is no such thing.
- deleted 9y ago
  [deleted]

Scarblac 9y ago

Its insane energy use is only because of the need for the constant proof of work to make the decentralization possible.