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January 01, 2016, 01:50:19 AM |
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It would seem quite possible for an entity to hide it's mining power, just as it could hide it's total stash of Bitcoins among multiple wallets.
I personally have little fear of the "51% attack scenario". There is zero economic incentive for somebody to try and crash or double spend Bitcoin. While it might seem that it would be swell to do so, if there is a small whiff among folks that the Blockchain has been compromised in some way, it's value will plummet. I don't mean like cut in half, I mean like nearly evaporate. If you held a lot of Bitcoins and initiated the attack, you would decimate your holdings. Even if you didn't hold much in in Bitcoins, your investment in SHA-256 hardware would likewise be decimated. Who would would want to own 500PH of specialized ASIC mining hardware and infrastructure, with nothing to use it for? Your hardware would literally sell for pennies on the dollar, since there is essentially no other use for such specialized hardware.
It seems to me that Bitcoins has at least one of the major risks of any currency, lack of confidence. If/when a significant number of folks lose confidence in the "money" they promptly try and trade it in for some other kind of "money" that they think is safer. And by another kind of "money" I don't mean Litecoin. the flight will NOT be to another crypto currency, but rather an established fiat (e.g. US Dollars).
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