Hello, I begin saying that I am not an skilled of bitcoin however only a particular person keen about it. Not too long ago I learn an article about an “concern” of bitcoin these days however do not know the way actual is that, so i am asking right here.
After the final 12 months numerous unhealthy occasions occurred and influenced the bitcoin market, however in this time period mining a bitcoing has grow to be increasingly tough. That implies that the miners have extra bills and are compelled to promote they’re btc ( it’s unlikely to be granted a mortgage on this market scenario).
This, they are saying, creates a adverse spiral between bitcoin value and miners profitability.
The danger is their large capitulation; if many miners, as is already occurring, declared chapter concurrently, it will grow to be a lot simpler to get 51% of the community’s computing energy and compromise its safety.
Let me know what you concentrate on it and if it is an actual drawback or simply disinformation.
thanks
It is strange you would proceed your own question with ignorance to the exact things you are describing from the question. If you be bot, suggestion{(..)}: You would have been better off leaving the ‘Hi, {(a1,a2,a3,…)}’ portion off your delivery script and just stating the question.
If human, think about the placement of question marks when using the English language and asking for advice.
>This, they say, creates a negative spiral between bitcoin price and miners profitability.
There’s no spiral. As prices falls mining becomes less profitable. Miners who can’t profit stop mining; miners who can profit continue mining. End of spiral.
Look up bitcoin difficulty adjustment
Instead of worrying about the short term price volatility, you should learn:
* What Bitcoin actually is
* The basics of how Bitcoin works
* An overview of the history of money
* The basics of the nature of money. For example, what makes some kinds of money better than others
* How the current fiat currency system works, how it robs us
Read: “The Bitcoin Standard,” by S. Ammous
>The risk is their massive capitulation; if many miners, as is already happening, declared bankruptcy simultaneously, it would become much easier to get 51% of the network’s computing power and compromise its security.
People often said bitcoin is over-protected, i mean, we can loose 90% of our miners and the network will still safe. But anyways, there are some missconception in your words:
Because there are many miners (computers) in the network, de difficulty of mining a block is HIGH. If a lot of miners suddenly shutdown, there will be a high difficulty for much less computers (less computing power to solve the same problem). Consequences:
1.- Blocks mined after more than 10 minutos (15? 30? 120 mins? who know).
2.- Next difficulty adjustment delayed (in real time) because of block delay.
3.- Difficulty is finally adjusted at the current computing level. The network is again in balance.
So if a lot of miners abandon at once, there will be no security issues.
Aren’t PoW and difficulty adjustment preventing manipulation, even if some guy happen to “own” 50% of the nodes?
>if many miners, as is already happening, declared bankruptcy simultaneously, it would become much easier to get 51% of the network’s computing power and compromise its security.
The current aggregate hash rate is around 240,000,000 TH/s. A contemporary ASIC miner such as the Antminer S19 Pro can do approximately 110 TH/s and consumes 3250 W of power (even more to keep it cool, but let’s ignore that).
We can assume the nefarious operator who wants to mount a 51% attack doesn’t already control 51% of the existing hashpower; if they did they’d already be abusing it. You could speculate that they have 1%, 5%, 10% or more of the currently available hashpower but I’m going to assume anyone who wants to attack the network isn’t currently mining blocks and isn’t included in the existing 240,000,000 TH/s capacity.
So this newcomer needs to acquire 240,000,000 TH/s of SHA256 hash computing capacity–equivalent to about 2.2 million Antminer S19 Pros, which aren’t available in that quantity ANYWHERE, but if they were they’d cost a few billion dollars to acquire–build a facility to house and cool their ASICs and provide ~7 GIGAWATTS of power to them at a cost of several million dollars per hour.
If they succeed, what do they win? They can censor (prevent) new transactions or invalidate/erase earlier transactions by introducing a newer, longer chain than the “honest” chain used by everyone else. They can’t steal anyone’s Bitcoin or overproduce new Bitcoins at a rate faster than the protocol allows. Is that worth several billion dollars up front and upwards of $100 million per day in operating costs? I doubt it.
>The risk is their massive capitulation; if many miners, as is already happening, declared bankruptcy simultaneously, it would become much easier to get 51% of the network’s computing power and compromise its security.
This is incorrect. 51% of miners can’t compromise security. If they manipulate blocks, they are invalid, are rejected by the network and they lose the reward but have to pay for the electricity.
Honestly it wouldn’t be so bad if some of the overleveraged industrial miners went out of business. Miner prices would continue to decrease which is what I’m waiting for to pick up a few s19s on the cheap
Did the Bitcoin price go down again? The 2018 sleeping zombies woke up to post Bitcoin death spiral trash again
> just disinformation
Disinformation in 2018
Disinformation in 2022
Wake up again in 2026, post “death spiral” again
full nodes to save the day!
and there are plenty of individuals itching to get into mining if the industry drops the ball.
Mining farms are my least favorite part about Bitcoin, especially over leverage farms