Hypothetically, if bitcoin is to become the new global currency...

[grampajack]

Okay, hypothetically, let's say that bitcoin, or a similar cryptocurrency, is going to become the global currency that will replace all national currencies...

Could a global government, like the UN, build a server that would handle all the transactions, thereby making it impossible for private servers to turn a profit? It appears to me that bitcoin mining is becoming more an more centralized due to the increasing demands of staying competitive. Whereas a person could mine bitcoin on their laptop a few years ago, now they have to have very sophisticated purpose built servers and cheap electricity just to stay in the black.

So in the future, will bitcoin mining become so sophisticated that only a centralized entity will be able to handle it?

What I'm thinking is that if we get to that point, then the transaction fees will essentially be the equivalent of taxes. Has anyone ever proposed that scenario before, or am I way off base here?

ETA: Part of what got me thinking about this is that supercomputers are on the horizon. Could the UN simply come in with a highly sophisticated super computer and completely take over bitcoin mining?

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[G.Seed]

If you can bring a specialized computer from 2030 to 2017, you will be able to do that.
But now, even Google + Microsoft + Apple won't be able to take more than 50% of mining.

[Stedsm]

Going completely centralized isn't in the hands of just one single entity (here: UN) because the whole community will never let that happen, even those companies that are involved and are doing it their way won't let them take everything just for "free". But yes, there's a possibility of this going completely centralized as when governments start to intervene hard, they might put up a condition in front of these companies that if they wish to mine, they need to mine for transactions having determined fees (that they may decide) which may end up everything for common public here.
I think we are in the middle of a real decision that needs to be taken to prevent Bitcoins from getting slipped out of our hands and everything goes on the government's part. I don't think they will leave any chance to take the bigger piece out of this.

[HabBear]

Could a global government, like the UN, build a server that would handle all the transactions, thereby making it impossible for private servers to turn a profit?

So in the future, will bitcoin mining become so sophisticated that only a centralized entity will be able to handle it?

So you want bitcoin to evolve to have centralized control by a few very wealthy countries (that's largely what the UN is). That sounds like a very sad end game for Bitcoin, but maybe the UN (and only a united organization of all nations) could be responsible enough to not fuck it up. For right now, I much prefer this thing in the hands of millions of ordinary people and businesses a like.

The reason Segwit2x failed is because the SMALL INDEPENDENT miners refused to adopt the new code. So your worries about centralized private mining have not come true and in fact took a serious blow from all the independent private miners.

I think it's best that this thing remain out of the control or influence of any government. Governments, inherently lie, cheat, and steal when forced to do so. There's no real negative consequence for a government to limit that kind of bad behavior under what they deem are "urgent circumstances".

And, yes, it would be possible for a server (or several servers) to handle all of the transactions.

[dothebeats]

Mining would never be handed over to be centralized as that is the first thing that bitcoin combats: centralization. Also, by then it is entirely possible that we have switched into another algorithm apart from PoW which uses a large amount of power just to continue in operations. Lastly, cheaper transactions would be needed meaning miners couldn't be incentivized and no reason for them to mine.

[HabBear]

Mining would never be handed over to be centralized as that is the first thing that bitcoin combats: centralization. Also, by then it is entirely possible that we have switched into another algorithm apart from PoW which uses a large amount of power just to continue in operations. Lastly, cheaper transactions would be needed meaning miners couldn't be incentivized and no reason for them to mine.

Easy, buddy. The first word in this topic's thread is "Hypothetically".

So hypothetically and very much reality, a central entity could gain control (every hear of a 51% attack?)

And if a central (but 100% safe and moral, which is incredibly rare) authority did assume control it may dissolve the need for mining to produce payments.

I'm not saying I'm a fan of the centralization idea but if it were to happen, something like the UN would be the only option. So many people believe the UN is ineffective in reducing war (which is was a main purpose of its creation), perhaps the UN's purpose could be fulfilled by enabling more stable economic conditions worldwide without reducing the ability for capitalism and a free market to reign supreme. One way to do that is by instilling currency (and therefore wealth) that doesn't erode in value due to an inflating money supply.

In think this OP is on to something.

[dothebeats]

Easy, buddy. The first word in this topic's thread is "Hypothetically".

So hypothetically and very much reality, a central entity could gain control (every hear of a 51% attack?)

Yes, and have heard about the term a thousand times.

And if a central (but 100% safe and moral, which is incredibly rare) authority did assume control it may dissolve the need for mining to produce payments.

If I got this correct, fees would be unnecessary and transaction can pass through for free? Many would go against that thought, and it's highly unlikely to happen.

I'm not saying I'm a fan of the centralization idea but if it were to happen, something like the UN would be the only option. So many people believe the UN is ineffective in reducing war (which is was a main purpose of its creation), perhaps the UN's purpose could be fulfilled by enabling more stable economic conditions worldwide without reducing the ability for capitalism and a free market to reign supreme. One way to do that is by instilling currency (and therefore wealth) that doesn't erode in value due to an inflating money supply.

How can one be sure that the people in UN always protects the interest of the majority and would not go for their own selfish deeds? Also, why does an apolitical system need to be handed over to an organization.that could be influenced politically? The main reason why bitcoin is created is to combat financial control and whatnot, not to be a slave of the banks and rhe governments by creating another tool they can potentially exploit.

[HabBear]

The main reason why bitcoin is created is to combat financial control and whatnot, not to be a slave of the banks and rhe governments by creating another tool they can potentially exploit.

Agreed, and a non-governmental organization is literally neither a bank or a government.

If a 51% attack is imminent. Then I'd prefer it to be in the hands of an NGO than some private entity. That said, my first preference is that the bitcoin network be distributed across tens of thousands of nodes around the world. This is the safest option to prevent against hacks, fraud, and government intervention.

[thedarksun]

They could if they invent better mining machine than that which are used now and even then it would be only suppositions cause this plan has none certain arguments.

[DualScience]

It would likely be far cheaper for the world government shutdown the Bitcoin network with network filtering and establish alternative under their control.

[Rohitha]

... bitcoin to evolve to have centralized control by a few very wealthy countries (that's largely what the UN is). That sounds like a very sad end game for Bitcoin...

Agree. It would be a shame, as this is exactly what Bitcoin was created to overcome - centralized control of money, thereby leading to money being used as a system of control.

[jailtonjunior]

i really would like see it