I'm worried about the future of Bitcoin

[eddlow]

Bitcoin got me really excited. From the first day I heard about it I was blown away. I studied how it works and how it cuts off a lot of the risks (for example double-spending, etc.). The System is just genius and uses smart ways to create a decentralized payment system where no trust is needed. But something keeps me worried.

Right now, there are thousands of miners all over the world. I mine myself too. But since the difficulty is going up so fast, a lot of people are giving up the mining business. It makes sense that the difficulty goes up, but I think this will lead Bitcoin into a centralized system. Let's look at the American government for example. They have millions of taxpayers and no legal limits. I wouldn't be surprised if they would try to take over the Bitcoin network (hashrate, min. 51%). "Dumping" Bitcoin probably wouldn't be worth it, but what would be worth it (for them) is to censor/block transactions. They'd have the full control and power over it.

Using proof-of-stake, like Peercoin does, would make it more expensive and time-consuming. But still it's not truely safe.

What do you think about it? Will that be a problem?

[anu]

...the American government...

What do you think about it? Will that be a problem?

The government will definitely be a problem. It is a problem. It has been a problem. For many things, not just Bitcoin. But what you suggest is not how governments operate.

Just look at how the USSA and the EUSSR are developing into full fledged totalitarian police states. That is how government works.

The Achilles heel of Bitcoin are the exchanges. If government wants to kill Bitcoin, that is where they will hit.

[tsoPANos]

As the network hashing power goes up, the difficulty will do so.
But the aplies with does. The difficulty CAN GO DOWN depending on the network's hashing power.

[TrillionBTC]

eddlow,

I agree with you about the bitcoin network. I mine as well and believe that the network is something to be in awe of. For example the hash rate and the 21,000,000 Coin cap. These are two things that will make the real miners stand out and push all the rest out of business.

Lets look at the hash rate difficulty: This is going to push all the miners using Graphics Cards out of business if it has not already. Additionally it forces the rest of us to invest in our mining business (sink or Swim) or we're out too.

21,000,000 Coin Cap does the same thing but will more than likely push the optional transaction fee into a mandatory fee structure.

Bottom line if you're a miner make your money and live it up now or continue your investment and live for the future. Bitcoin has a future regardless what you decide.

[eddlow]

Oops, I think a thread like this already exists: https://bitcointalk.org/index.php?topic=440524.0