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Author Topic: Does Bitcoin have a Mining Monopoly problem?  (Read 32 times)
Osaaah
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August 23, 2018, 04:51:14 PM
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As professional mining groups with specialized computer chips emerged. Bitcoin mining is gradually becoming centralized.  News about how bigger and influential companies in the bitcoin economy by virtue of their sheer amount of processing power, or hash rate, are taking controls over the Bitcoin mining continue to widespread, making more undeniable. Just to clear on this topic, Help me understand whether the above topic is entirely true. And if it is true, what is the its implications.
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Zin-Zang
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Killing Lightning Network with a 51% Ignore attack


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August 23, 2018, 04:55:41 PM
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As professional mining groups with specialized computer chips emerged. Bitcoin mining is gradually becoming centralized.  News about how bigger and influential companies in the bitcoin economy by virtue of their sheer amount of processing power, or hash rate, are taking controls over the Bitcoin mining continue to widespread, making more undeniable. Just to clear on this topic, Help me understand whether the above topic is entirely true. And if it is true, what is the its implications.

It is True , the Chinese Miners have had over 51% for the past few years.

So Bitcoin is centralized, and you are totally dependent on the Chinese miners to maintain bitcoin, as they could 51% attack it at any time.
However doing so , destroys their business model unless they decide to kill bitcoin and move to bitcoin cash.

No different that using any other payment service that you have no control over.


Proof of Stake aka Proof of Sustainability aka Proof of Superior Design
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Vsamuel
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August 23, 2018, 05:00:36 PM
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Obviously yes.. As much as bitcoin try to deny it... Bitcoin mining currently has a monopoly problem. Recent news have made it clear that Bitmain, one of the most influential company in the bitcoin economy holds virtually greater proportion of processing power, or hash rate. And hence is one of the sole determinant/ influences in the Bitcoin market.
ZoomhashLLC
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August 23, 2018, 05:03:05 PM
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I would hate to see the Bitcoin network in a state where it is vulnerable, or it has a single point of failure. Let’s say Bitmain really is the villain. The worst thing that can happen is a fork and Bitcoin would continue without those two pools. This is unlikely, as Bitmain is one of the main contributors to the decentralized revolution. They’ve invested so much in their infrastructure and position, it is unlikely they are going to throw that away.
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Another point to consider is the amount of additional hashpower necessary to reach 51% of the hashing power. While the two pools came close, the 51% mark is still 4 million TH/s away. That’s an equivalent to 286,000 Antminer S9i’s. Either way, moves such as these do not go unnoticed, and Bitmain is too involved in Bitcoin for this to be a real risk
Source: https://www.crypto-news.net/truth-behind-the-news-bitcoins-supposed-51-attack/

Here is an interesting article on 51% attacks with a large player like Bitmain in the network.
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August 23, 2018, 05:53:16 PM
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As professional mining groups with specialized computer chips emerged. Bitcoin mining is gradually becoming centralized.  News about how bigger and influential companies in the bitcoin economy by virtue of their sheer amount of processing power, or hash rate, are taking controls over the Bitcoin mining continue to widespread, making more undeniable. Just to clear on this topic, Help me understand whether the above topic is entirely true. And if it is true, what is the its implications.
Yes, you correctly argue that bitcoin mining has become a whole production. As far as I know in China there are 3 large firms in the hands of which all bitcoin mining is concentrated. There are certainly small companies, but I'm talking about large ones. And these 3 companies are friends with each other and not competitors. In the hands of these 3 companies there is a lot of valuable information that they can not give to law enforcement agencies, then the principle of decentralization will be violated.

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