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0 pointsthis_user9y ago0 comments

Plus operating ransomware.

The problem with Bitcoin is the costs associated with using it. Due to its decentralised nature it will always be more costly than centralised solutions. Therefore, Bitcoin simply cannot compete unless illegal activities are involved. The economics simply do not work out.

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kneel9y ago

>Due to its decentralised nature it will always be more costly than centralised solutions.

That's a really sweeping claim and I'd argue that it's too soon to really claim one way or another.

The security of bitcoin is inherited from it's decentralization. The massive proof of work operations in Bitcoin (and the resulting costs) are part of bitcoin's security.

Centralized solutions will always be vulnerable as long as security bugs exist (have you ever heard of a completely secure database?) And fraud will always be part of the equation.

So what's better? Currently no one knows. But interestingly enough the direction of bitcoin right now is to build centralized networks on top of a decentralized network.

davidgerard9y ago

This follows from basic computer science. (Something I increasingly find Bitcoin advocates handwaving away.) If decentralisation were more efficient than centralisation, systems aiming for efficiency would naturally centralise; this is not what we observe.

The decentralisation is stupendously inefficient, Proof of Work is 47kg of carbon per transaction literally wasted, and it all centralises anyway - the code is controlled by just a few people, the mining is controlled by four miners (and there is no guarantee they are owned separately), most of the mining is in one country and 75% is about to be in one building.

Bitcoin decentralises things that don't need to be decentralised, wastefully, then naturally recentralises anyway.

kneel9y ago

>If decentralisation were more efficient than centralisation, systems aiming for efficiency would naturally centralise; this is not what we observe.

I'm going to assume you mixed up your words there. I'd argue that we see lots of decentralization on the web. I don't see why it has to be one or the other, they seem to work fine in a hybrid state.

>the code is controlled by just a few people, the mining is controlled by four miners

Code is available on github and you can fork it. Mining centralization was the result of competition and some ambitious Chinese living next to dams. There is nothing preventing this from changing in the future.

>Bitcoin decentralises things that don't need to be decentralised, wastefully, then naturally recentralises anyway.

I'd say that money should definitely be decentralized.

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kneel9y ago

>Due to its decentralised nature it will always be more costly than centralised solutions.

That's a really sweeping claim and I'd argue that it's too soon to really claim one way or another.

The security of bitcoin is inherited from it's decentralization. The massive proof of work operations in Bitcoin (and the resulting costs) are part of bitcoin's security.

Centralized solutions will always be vulnerable as long as security bugs exist (have you ever heard of a completely secure database?) And fraud will always be part of the equation.

So what's better? Currently no one knows. But interestingly enough the direction of bitcoin right now is to build centralized networks on top of a decentralized network.

davidgerard9y ago

Bitcoin decentralises things that don't need to be decentralised, wastefully, then naturally recentralises anyway.

kneel9y ago

>If decentralisation were more efficient than centralisation, systems aiming for efficiency would naturally centralise; this is not what we observe.

I'm going to assume you mixed up your words there. I'd argue that we see lots of decentralization on the web. I don't see why it has to be one or the other, they seem to work fine in a hybrid state.

>the code is controlled by just a few people, the mining is controlled by four miners

>Bitcoin decentralises things that don't need to be decentralised, wastefully, then naturally recentralises anyway.

I'd say that money should definitely be decentralized.

2 more replies

j / k navigate · click thread line to collapse