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That's not at all relevant to parent post's point. BTC mining is famously centralized, and continues to get more so. It is inevitable that a manufacturer of BTC
by idiotsecant 1y ago
That's not at all relevant to parent post's point. BTC mining is famously centralized, and continues to get more so. It is inevitable that a manufacturer of BTC asics with access to cheap power will become large enough to control 51% of the hash. It's inevitable. It's bad system design - it makes being able to manufacture your own custom silicon table stakes to run a financial system for some reason.
BTC will have to move to a proof of stake design to survive. It's unavoidable.
- ifwinterco 1y agoThat is debatable, but also besides anything else, changing to PoS means changing the tokenomics (some tail emission for staking rewards, no 21m hard cap), which means it's incredibly unlikely to happen
- ChadNauseam 1y agowhy would staking rewards be any more necessary than mining rewards?
- ifwinterco 1y agoIn the end state (after ~2140), mining rewards just come from TX fees. But true, it is possible you could just redistribute TX fees to stakers. Post-merge ethereum is designed so that the gas fees and the staking rewards roughly cancel out on balance (so overall inflation is around zero), but they are decoupled so even if nobody is using the network you still get a staking yield
- eurleif 1y ago>so overall inflation is around zero Pedantic point: monetary inflation is around zero, not necessarily price inflation (which is what people typically mean when they just say "inflation").
- ifwinterco 1y agoYes sorry, important clarification. In theory if the entire world was on an ethereum standard with a steady state population, price inflation would also average out to zero
- robocat 1y ago> It is inevitable that a manufacturer of BTC asics with access to cheap power will become large enough to control 51% of the hash The ASIC manufacturer would also need a backdoor. ASIC manufacturers don't control mining. Large miners are unlikely to allow backdoors into their mining network.
- fruitworks 1y agoASIC miners often do control mining. They often mine with chips before they drop them in the public market
- passivegains 1y agoI think they mean the manufacturer would just keep most of the stock for themselves. Reminds me of that famous Scarface quote: "You should get high on your own supply, it's a great idea that won't end horribly."
- idiotsecant 1y ago>ASIC manufacturers don't control mining. I dont think you understand the BTC mining ecosystem
- LikesPwsh 1y agoBTC can't move to proof of stake because religious zealots would keep their money in the old fork. It's doomed in general, see the cash fork.
- latchkey 1y agoTokenized bitcoin.