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CASEBITCOIN making the case for bitcoin every day
Bitcoin Marketcap
$1.84T
Gold Marketcap
$16.20T
BTC Settlement Volume (24hr)
$12.90B
BTC Inflation Rate (next 1yr)
1.17%
CASEBITCOIN making the case for bitcoin every day
9 Aug 2020 | | Price when published: $11,726 (ROI since: +732%)
Filed under: technology blogs
Jameson Lopp addresses the common criticism that mining concentration, particularly in China, presents a non-trivial threat to Bitcoin. Jameson summarizes the mining landscape (with plenty of data visualizations), examines what can and can't be done via a mining attack, practical issues and incentives surrounding executing an attack, and why even a nation-state attack is not likely to yield catastrophic results.
It's hard to imagine a scenario in which a state actor would be able to quickly and covertly seize enough hashpower to perform an ongoing attack that lasts more than a few hours. A worst case scenario in which state actors did seize all of the physical equipment could result in China only mining empty blocks and orphaning other blocks that did contain transactions, essentially halting all transaction confirmations on the network. Then it would become a game of either patiently waiting for them to give up or coordinating a code change that would make their hashing machines worthless.
Point being, any large-scale mining attack is going to be limited in its effectiveness for a variety of reasons and will be unlikely to disrupt network operations for more than a short period of time.
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