Bitcoin Forum

Monopoly-Resistant Mining? Paper Claims Bitcoin Centralization Fears Overblown

Bitcoin might be naturally resistant to mining monopolies – or so claims a new research paper authored by University of Siena professor of economics, Nicola Dimitri.

At a high level, the paper contends "the intrinsic structure of the mining activity seems to prevent the formation of a monopoly," a finding that could ease some of the concerns in an industry currently grappling with whether miners have too much power.

Published in Ledger, a journal that covers blockchain research exclusively, the paper explains in depth how, in an equilibrium, miners don't necessarily leave the system just because other miners are able to profit more by cutting their costs somehow.

https://www.coindesk.com/monopoly-resistant-mining-paper-claims-bitcoin-centralization-fears-overblown/