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There is a danger of theft, and the risk is to everyone, not just the parties to this big transaction. The risk is this: 1. A malicious syndicate gathers a bil
by lacker 7y ago
There is a danger of theft, and the risk is to everyone, not just the parties to this big transaction. The risk is this:
1. A malicious syndicate gathers a billion dollars of bitcoin and sends it to themselves
2. In a short period of time, like a few days, the syndicate exchanges that bitcoin for non-bitcoin assets
3. The syndicate spends tens or hundreds of millions of dollars to fork the chain, backing up the ledger, so that they own the billion dollars of bitcoin again
So anyone accepting bitcoin for non-bitcoin assets for the next week or so is at risk. It doesn’t have to be a single transaction, though; this danger occurs whenever the transaction volume on bitcoin gets above the cost of mining.
- lonelappde 7y agoIf someone could fundraise a billion dollars, using it to steal another billion dollars (not great ROI considering all the security risks of bitcoin ecosystem) at the expense of shattering worldwide faith in Bitcoin (which also devalues the stolen coins), seems a really bad bet. It only makes sense if it was a government or some group spending a billion (semi illiquid because Bitcoin) dollars with the goal of destroying the Bitcoin ecosystem.
- keymone 7y ago> so that they own the billion dollars of bitcoin again which is now worth zero :)