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The most the government could do is generate all the new coins, this would drive up the price of coins until it became economical compete. Given the almost lim

by fleitz 14y ago

The most the government could do is generate all the new coins, this would drive up the price of coins until it became economical compete. Given the almost limitless divisibility of bitcoins I don't think it's much of a threat. I'd be far more worried about laws being passed that made bitcoins punishable by jailtime.

Estragon 14y ago
Actually, at least as of a couple of months ago, if you are generating all new coins, you can prevent all transactions from being validated (by refusing to include them in your blocks) or undermine community faith in bitcoin integrity by double spending. Both capabilities would be pretty devastating.
- jerguismi 14y ago
  You need more than 50% of the total bitcoin network computing power to do that kind of attack. While goverments have the money to do it, do they have the capabilities and incentives?
  - Estragon 14y ago
    Of course many governments have the capability. The main reason a government would want to do this is that control over the coin of the realm is a major source of state power. If a government ever concluded that bitcoin posed a credible threat to that power, that would be a strong incentive to undermine it.
    - celticninja 14y ago
      Capability =/= Ability
      - Estragon 14y ago
        Sorry, not sure what your point is. Could you say a bit more about it?
        celticninja 14y ago
        Just because the government has the resources to throw at a problem it does not mean that they will do so effectively or efficiently.
      - DanBC 14y ago
        What? You think NSA or GCHQ[1] don't have the knowledge to implement an efficient bitcoin machine? You think they don't have the money? You think they don't already have significant computing power? Or are you suggesting they'd be hampered by legal oversight issues? [1] GCHQ probably have the most powerful computing facility in Europe. That puts them amongst the most powerful computing centres world wide.

by fleitz 14y ago

Estragon 14y ago

Actually, at least as of a couple of months ago, if you are generating all new coins, you can prevent all transactions from being validated (by refusing to include them in your blocks) or undermine community faith in bitcoin integrity by double spending. Both capabilities would be pretty devastating.

jerguismi 14y ago
You need more than 50% of the total bitcoin network computing power to do that kind of attack. While goverments have the money to do it, do they have the capabilities and incentives?
- Estragon 14y ago
  Of course many governments have the capability. The main reason a government would want to do this is that control over the coin of the realm is a major source of state power. If a government ever concluded that bitcoin posed a credible threat to that power, that would be a strong incentive to undermine it.
  - celticninja 14y ago
    Capability =/= Ability
    - Estragon 14y ago
      Sorry, not sure what your point is. Could you say a bit more about it?
      - celticninja 14y ago
        Just because the government has the resources to throw at a problem it does not mean that they will do so effectively or efficiently.
    - DanBC 14y ago
      What? You think NSA or GCHQ[1] don't have the knowledge to implement an efficient bitcoin machine? You think they don't have the money? You think they don't already have significant computing power? Or are you suggesting they'd be hampered by legal oversight issues? [1] GCHQ probably have the most powerful computing facility in Europe. That puts them amongst the most powerful computing centres world wide.