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Another possible reason is that if a small number of companies start using ASICs, and they're the only ones that use ASICs without selling them to "regular" use
by nadaviv 13y ago
Another possible reason is that if a small number of companies start using ASICs, and they're the only ones that use ASICs without selling them to "regular" users too, they'll quickly gain a large percentage of the hashing power. If a company like ButterflyLabs controls a significant chunk of the total hashing power, it'll enable them to do 51% attack [1] on the network, which'll lower the trust users have in the currency, leading to decreased value.
Its a bit paradoxical - people will want as much hashing power as they can get, yet if they get too much of it they risk destroying the currency value, leaving them with nothing.
[1] https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_computing_power https://en.bitcoin.it/wiki/Weaknesses#Attacker_has_a_lot_of_...