Risk of banksters killing bitcoin via 51% attack

[cspeter8]

Can anyone provide some links to some good analysis of how likely the affluent people behind the creation of central banks are to buy enough of the newest fastest mining rigs to get a majority of the mining and go on to destroy the bitcoin network?  Perhaps by driving difficulty way up, and then stopping the creation of new blocks, or by forking the software in a direction that will neuter the decentralized nature of bitcoin, or some other way?

[LiteCoinGuy]

you cant destroy bitcoin with a 51% attack.

[Wilikon]

Can anyone provide some links to some good analysis of how likely the affluent people behind the creation of central banks are to buy enough of the newest fastest mining rigs to get a majority of the mining and go on to destroy the bitcoin network?  Perhaps by driving difficulty way up, and then stopping the creation of new blocks, or by forking the software in a direction that will neuter the decentralized nature of bitcoin, or some other way?

So I am a rich bankster. I spend $1B in ASIC mining rigs. But first I need to build a factory big enough and hire enough people for my evil plan. Then I try to 51 the network, making it even stronger for everyone before I destroy it and its value and purpose so I can go back to business as usual.

Not sure about a bankster destroying multiple billions for everyone to see without any consequences, or push backs from the community. But I believe this scenario is no more realistic unless something like a quantum computer happens to exist. If that happen it will be the end of any secrets and crypto not just bitcoin: banking, military, etc.

[AnonyMint]

you cant destroy bitcoin with a 51% attack.

No you just take it over and get the masses to use it, as you've morphed it to be.

Transactions Withholding Attack

There are two critical flaws in Bitcoin which doom it.

1. Transaction fees are not zero and mining of new coins does not sustain mining perpetually.

2. Mining is not CPU-only (along with botnet resistant) so that it is widespread and available to everyone.

Actually there is a third flaw with lack of strong anonymity, which dooms it as well to takeover by taxation authorities.

[bryant.coleman]

There are two critical flaws in Bitcoin which doom it.

1. Transaction fees are not zero and mining of new coins does not sustain mining perpetually.

2. Mining is not CPU-only (along with botnet resistant) so that it is widespread and available to everyone.

Actually there is a third flaw with lack of strong anonymity, which dooms it as well to takeover by taxation authorities.

1. This will be a serious concern in the future, when the value of BTC rises.

2. Don't see much problem with this

3. If you use TOR and a BTC mixer, it will be very hard for the tax authorities to trace you.

[Jcw188]

There are two critical flaws in Bitcoin which doom it.

1. Transaction fees are not zero and mining of new coins does not sustain mining perpetually.

2. Mining is not CPU-only (along with botnet resistant) so that it is widespread and available to everyone.

Actually there is a third flaw with lack of strong anonymity, which dooms it as well to takeover by taxation authorities.

1. This will be a serious concern in the future, when the value of BTC rises.

2. Don't see much problem with this

3. If you use TOR and a BTC mixer, it will be very hard for the tax authorities to trace you.

It's not as hard for authorities to trace you if you convert into fiat, is it?  Also regarding 2, I do see that as a problem because couldn't some SUPER organizations develop supercomputers and basically take over mining, centralizing mining and then they can do whatever they want with accepting/not accepting transactions into the blockchain?

[AnonyMint]

There are two critical flaws in Bitcoin which doom it.

1. Transaction fees are not zero and mining of new coins does not sustain mining perpetually.

2. Mining is not CPU-only (along with botnet resistant) so that it is widespread and available to everyone.

Actually there is a third flaw with lack of strong anonymity, which dooms it as well to takeover by taxation authorities.

1. This will be a serious concern in the future, when the value of BTC rises.

2. Don't see much problem with this

3. If you use TOR and a BTC mixer, it will be very hard for the tax authorities to trace you.

It's not as hard for authorities to trace you if you convert into fiat, is it?  Also regarding 2, I do see that as a problem because couldn't some SUPER organizations develop supercomputers and basically take over mining, centralizing mining and then they can do whatever they want with accepting/not accepting transactions into the blockchain?

That is correct. The control over mining is becoming centralized.

Also #3 is technically incorrect. He doesn't seem to comprehend that BTC mixer doesn't hide your IP address. And I already explained why Tor doesn't ALWAYS hide your IP address from NSA. And it only takes a minority who are not anonymous to force all the rest of us to be not anonymous, because our coins can become unspendable if everyone gets afraid to accept them if id isn't provided (and you are afraid to provide id if you didn't get it from the person you bought from).

Also none of the retorts address the Transactions Withholding Attack, which is where transaction fees (no matter how small) are the source of funding for mining, instead of coin rewards.

I have already solved all of these problems.

[Phinnaeus Gage]

There are two critical flaws in Bitcoin which doom it.

1. Transaction fees are not zero and mining of new coins does not sustain mining perpetually.

2. Mining is not CPU-only (along with botnet resistant) so that it is widespread and available to everyone.

Actually there is a third flaw with lack of strong anonymity, which dooms it as well to takeover by taxation authorities.

1. This will be a serious concern in the future, when the value of BTC rises.

2. Don't see much problem with this

3. If you use TOR and a BTC mixer, it will be very hard for the tax authorities to trace you.

Jehovah's Witnesses don't join the military, work at factories that produce weapons of mass destruction, i.e. guns, nor salute their state flag. Yet, they're bound by their doctrine to pay all their taxes due in a timely fashion.

[bryant.coleman]

Jehovah's Witnesses don't join the military, work at factories that produce weapons of mass destruction, i.e. guns, nor salute their state flag. Yet, they're bound by their doctrine to pay all their taxes due in a timely fashion.

If they don't salute the state flag, then it is not an act of treason?

Anyway... I don't have any problem with paying taxes, as long as they are not unjustifiable.

[nasamanBoy]

Here is an interesting link ....
http://www.zerohedge.com/news/2013-12-03/another-central-bank-warns-bitcoin-risks

[thetruth]

Major risks for bitcoin:

1. It depends on the Internet. Who controls the Internet also controls the bitcoin.
2. Bitcoin is based on known algorithms to which the reverse algorithms are known. Anything in the bitcoin world can be decrypted by the secret government instantly.
3. The value of the bitcoin is a subject of market speculation. Today you have it - Tomorrow you don't.

That is why the Gold is the most valuable asset - nobody on Earth can synthesize stable atom of the metal and its natural occurance is very rare.
The bankers have the gold.

[Kaligulax]

A compromise in the cryptography, a mass loss of coins/virus through the system that scares users away, natural disaster, an unknown unknown..so many things. By the day it gets stronger, but in life there are no guarantees

[Spendulus]

A compromise in the cryptography, a mass loss of coins/virus through the system that scares users away, natural disaster, an unknown unknown..so many things. By the day it gets stronger, but in life there are no guarantees

Well, that is the way to look at it.  Bitcoin suffers "a setback" <think, MtGox>....But THEN WHAT?

Is it weakened or strengthened?  I think it grows stronger, but we'll see. 

[Spendulus]

Major risks for bitcoin:

1. It depends on the Internet. Who controls the Internet also controls the bitcoin.
2. Bitcoin is based on known algorithms to which the reverse algorithms are known. Anything in the bitcoin world can be decrypted by the secret government instantly.
3. The value of the bitcoin is a subject of market speculation. Today you have it - Tomorrow you don't.

That is why the Gold is the most valuable asset - nobody on Earth can synthesize stable atom of the metal and its natural occurance is very rare.
The bankers have the gold.

No, bitcoin does not depend on the Internet.

No, it cannot be decrypted by the secret government.

No, the value is not but partly based on market speculation.

No, Gold is not the most valuable asset on earth.

Batting 100% there, dude.

[Lyomon86]

Can you really destroy bitcoin with a 51% attack?? I don't believe that!