I am very confused by China's movements on bitcoin lately. They control enough of the processing nodes, and the currency, to be able to create a coordinated attack on the blockchain (2/3 majority required).
Here is another question. It is being reported that Colonial Pipeline paid $90 M to the hackers in Bitcoin. But at the same time, Elon Musk came out and said he was no longer taken bitcoin. And a few days later China says the same thing.
Yeah. It's all very strange -- can't make much sense out of it.
Luckily I moved my crypto all into ETH in 2016 (besides a small hedge in doge ?), when I saw how much control China had on BTC. Clearly China is planning something and Musk is either privy to it or has seen it in the tea leaves. I guess we'll have to wait and see.
Yes. Because one has utility and has increased substantially (percentage wise) in the last 5 years compared to the other. Also less control by bad actors.
Controlling a majority of miners just means that you have potential to double-spend your bitcoins. Once the blockchain gets long enough, only one of those transactions would be valid.
So basically controlling a majority of miners could let you default on payments, but you only get away with it for a few minutes (hour at best).
It's not just mining. It's also the processing nodes. With a majority control you can take over the block chain. Which is why its security depends on its decentralization.
Sorry, I should clarify, when I say node, I'm referring to the partial or lightweight nodes, as opposed to the full nodes (miners).
And I am concerned, because at any time if some entity controls the majority of the nodes they can completely manipulate and even crash the currency by creating false transactions and verifying it by majority consensus. And the vast majority of bitcoin and nodes are held in China (or were the last time I looked into it a few years back), which has a potential for very bad things to happen to bitcoin, given the CCP's history with currency.
What would they gain by buying up a majority of Bitcoin? It wouldn't prevent anyone else from buying, selling, or trading Bitcoin. I guess they could dump it at some future date and cause the value to go down, but that would only be temporary and at great cost to themselves.
I am very confused by China's movements on bitcoin lately. They control enough of the processing nodes, and the currency, to be able to create a coordinated attack on the blockchain (2/3 majority required).
So why are they suddenly anti-bitcoin?
Here is another question. It is being reported that Colonial Pipeline paid $90 M to the hackers in Bitcoin. But at the same time, Elon Musk came out and said he was no longer taken bitcoin. And a few days later China says the same thing.
Yeah. It's all very strange -- can't make much sense out of it.
Luckily I moved my crypto all into ETH in 2016 (besides a small hedge in doge ?), when I saw how much control China had on BTC. Clearly China is planning something and Musk is either privy to it or has seen it in the tea leaves. I guess we'll have to wait and see.
Does it really matter when all the cryptos move together?
Yes. Because one has utility and has increased substantially (percentage wise) in the last 5 years compared to the other. Also less control by bad actors.
Controlling a majority of miners just means that you have potential to double-spend your bitcoins. Once the blockchain gets long enough, only one of those transactions would be valid.
So basically controlling a majority of miners could let you default on payments, but you only get away with it for a few minutes (hour at best).
It's not just mining. It's also the processing nodes. With a majority control you can take over the block chain. Which is why its security depends on its decentralization.
https://en.wikipedia.org/wiki/Byzantine_fault
Miners ARE the processing nodes.
I'm not concerned about China having the most miners, because at any time anyone can become a miner.
Sorry, I should clarify, when I say node, I'm referring to the partial or lightweight nodes, as opposed to the full nodes (miners).
And I am concerned, because at any time if some entity controls the majority of the nodes they can completely manipulate and even crash the currency by creating false transactions and verifying it by majority consensus. And the vast majority of bitcoin and nodes are held in China (or were the last time I looked into it a few years back), which has a potential for very bad things to happen to bitcoin, given the CCP's history with currency.
What would they gain by buying up a majority of Bitcoin? It wouldn't prevent anyone else from buying, selling, or trading Bitcoin. I guess they could dump it at some future date and cause the value to go down, but that would only be temporary and at great cost to themselves.