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> I find that this is not a problem in practice. Even the government with infinite money would struggle to buy even 20% of circulating supply because they would
by xur17 6y ago
> I find that this is not a problem in practice. Even the government with infinite money would struggle to buy even 20% of circulating supply because they would have to drive the price to absolutely insane amounts in order to achieve that.
And even if they did accumulate enough to carry out a 51% attack, they could only attack once, and then would be slashed [0].
[0] https://cointelegraph.com/news/vitalik-buterin-reveals-why-a-51-attack-on-eth-2-0-would-not-be-fatal https://cointelegraph.com/news/vitalik-buterin-reveals-why-a...
- cryptica 6y agoTrue, and because the blockchain is public, the community would see the tokens accumulating. When there is high demand, individuals in the community will naturally tend to tighten the supply on the markets. Typically, they will sell fewer and fewer tokens as the price gets higher. This is because most community members really believe in the project and they believe that fiat is worthless, so they usually only sell just enough to fund a modest lifestyle. They know that the token is the most valuable asset in this economy. They know that once they sell it, they can't get it back.