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If you are a central bank that can print money out of thin air you can use that money to buy the majority of the mining capacity and make bitcoin useless with a
by sprash 6y ago
If you are a central bank that can print money out of thin air you can use that money to buy the majority of the mining capacity and make bitcoin useless with a 51% attack. People that want to destroy bitcoin have no interest in making money "with it". They invest that money to destroy it.
- rawtxapp 6y agoExcept central banks don't live in a vacuum. If they print tons of money to buy it, that would push the price even higher, incentivizing even more miners. And I don't think central banks would want to destroy it. In many ways, many useful transactions in crypto occur in stablecoins pegged to the dollar. If anything, central bank might want to participate and innovate with everyone rather than try to destroy Bitcoin.
- sprash 6y agoCentral banks print Trillions of dollars to buy bonds right at this moment and get away with it. They live in a vacuum and can do what they want without much democratic oversight. Since all the relevant mining is happening in China nowadays the fate of bitcoin lies in the hands of the autocratic Chinese regime. If they instruct all miners to use their Chinese version of Bitcoin that e.g. dismisses all transactions and only produces empty blocks, Bitcoin is over.
- codehalo 6y agoAnd considering your argument of absolute power of CBs, you still prefer central banks over bitcoin?