Decentralization: Good And Bad
Yermack called it ironic that bitcoin’s democratic process, afforded by its decentralized nature, made it popular but is now undermining it. The service currently has thousands of miners to clear a transaction. For the system to grow, the miners must agree on a solution to the current problem.
He said people saw the bottleneck coming.
Members who have invested thousands of dollars to mine bitcoin stand to lose their investment once the system changes. Those with the fastest computers – most of whom happen to be in China –are still profiting, Yermack said, and these individuals, therefore, have no reason to change the rules of the bitcoin system since others will benefit at their expense.
https://www.cryptocoinsnews.com/transaction-bottleneck-kill-bitcoin-nyu-academic-warns/
