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Thread: The 51% Problem, or why crypto is too expensive to be a currency

  1. #1

    Question The 51% Problem, or why crypto is too expensive to be a currency

    So bitcoin as the ur-crypto has a bit of an energy problem. The problem is that it is built in by design as the primary defense of the system.

    If you can control more than 50% of the processing you control the entire currency. So the energy cost has to be high enough to not be worth it.

    So as bitcoin becomes more valuable the processing cost has to go up as a security measure. This means that the cost of transactions goes up with it though.

    For a coin to become a global currency it needs to cost more to corner the processing than any single entity could achieve, so the processing energy consumption has to be higher than the US govt or the Chinese govt could hope to match.

    This energy cost has to be on going, it can't be a one off like building a fort around your gold.

    My question is, are there any decentralized coins yet that don't have a 51% problem?
    In New Zealand:
    The Coastguard is a Charity
    Air Traffic Control is a private company run on user fees
    The DMV is a private non-profit
    Rescue helicopters and ambulances are operated by charities and are plastered with corporate logos
    The agriculture industry has zero subsidies
    5% of the national vote, gets you 5 seats in Parliament
    A tax return has 4 fields
    Business licenses aren't even a thing nor are capital gains taxes
    Constitutional right to refuse any type of medical care



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  3. #2
    Quote Originally Posted by idiom View Post
    So bitcoin as the ur-crypto has a bit of an energy problem. The problem is that it is built in by design as the primary defense of the system.

    If you can control more than 50% of the processing you control the entire currency. So the energy cost has to be high enough to not be worth it.

    So as bitcoin becomes more valuable the processing cost has to go up as a security measure. This means that the cost of transactions goes up with it though.

    For a coin to become a global currency it needs to cost more to corner the processing than any single entity could achieve, so the processing energy consumption has to be higher than the US govt or the Chinese govt could hope to match.

    This energy cost has to be on going, it can't be a one off like building a fort around your gold.

    My question is, are there any decentralized coins yet that don't have a 51% problem?
    That may be a problem, but it's not the root problem. The root problem with bitcoin is that it has no intrinsic value. There's nothing to put a floor on the value of a bitcoin. For example if the price of gold drops below a certain level people will just keep it and use it rather than sell it.

  4. #3
    Quote Originally Posted by Madison320 View Post
    That may be a problem, but it's not the root problem. The root problem with bitcoin is that it has no intrinsic value. There's nothing to put a floor on the value of a bitcoin. For example if the price of gold drops below a certain level people will just keep it and use it rather than sell it.
    The point of a currency is to have no intrinsic value. It makes it a much more neutral measure of value. Gold has a tonne of decorative and industrial uses not to mention hoarding fetishes that confound estimations of value flowing in the economy and price estimation.
    In New Zealand:
    The Coastguard is a Charity
    Air Traffic Control is a private company run on user fees
    The DMV is a private non-profit
    Rescue helicopters and ambulances are operated by charities and are plastered with corporate logos
    The agriculture industry has zero subsidies
    5% of the national vote, gets you 5 seats in Parliament
    A tax return has 4 fields
    Business licenses aren't even a thing nor are capital gains taxes
    Constitutional right to refuse any type of medical care

  5. #4
    To rephrase, any blockchain can have authority over it essentially purchased on the open market.

    The only way to stop this occurring is to keep the price higher than the value of the blockchain.

    The price is kept high by massive continuous energy usage that must grow as the value of the blockchain grows.

    Because of this any blockchain that gets to be worth something is going to have a huge operations overhead vs a centralized security system, otherwise it risks compromise.
    In New Zealand:
    The Coastguard is a Charity
    Air Traffic Control is a private company run on user fees
    The DMV is a private non-profit
    Rescue helicopters and ambulances are operated by charities and are plastered with corporate logos
    The agriculture industry has zero subsidies
    5% of the national vote, gets you 5 seats in Parliament
    A tax return has 4 fields
    Business licenses aren't even a thing nor are capital gains taxes
    Constitutional right to refuse any type of medical care

  6. #5
    If the 51% problem hasn't happened yet, at bitcoin's various sizes of growth, it seems very unlikely to happen in the future when it becomes much bigger.
    "He's talkin' to his gut like it's a person!!" -me
    "dumpster diving isn't professional." - angelatc


    "Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

    "Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."

  7. #6
    Quote Originally Posted by dannno View Post
    If the 51% problem hasn't happened yet, at bitcoin's various sizes of growth, it seems very unlikely to happen in the future when it becomes much bigger.
    The government hasn't decided to take it over yet.
    Never attempt to teach a pig to sing; it wastes your time and annoys the pig.

    Robert Heinlein

    Give a man an inch and right away he thinks he's a ruler

    Groucho Marx

    I love mankindÖitís people I canít stand.

    Linus, from the Peanuts comic

    You cannot have liberty without morality and morality without faith

    Alexis de Torqueville

    Those who fail to learn from the past are condemned to repeat it.
    Those who learn from the past are condemned to watch everybody else repeat it

    A Zero Hedge comment

  8. #7
    Quote Originally Posted by Swordsmyth View Post
    The government hasn't decided to take it over yet.

    I'm pretty sure if there was a hostile takeover, some measures could be implemented, like an emergency fork, or something of that nature.
    "He's talkin' to his gut like it's a person!!" -me
    "dumpster diving isn't professional." - angelatc


    "Each of us must choose which course of action we should take: education, conventional political action, or even peaceful civil disobedience to bring about necessary changes. But let it not be said that we did nothing." - Ron Paul

    "Paul said "the wave of the future" is a coalition of anti-authoritarian progressive Democrats and libertarian Republicans in Congress opposed to domestic surveillance, opposed to starting new wars and in favor of ending the so-called War on Drugs."

  9. #8
    Quote Originally Posted by dannno View Post
    If the 51% problem hasn't happened yet, ...
    It almost did roughly 5 years ago:

    https://qz.com/165273/the-existentia...now-at-hand/#/
    I compiled a "brief" history of events since October 2008 that are defining the global currency war and the role that gold is playing:

    Tin Foil Hats, Economic Reality and the Total Perspective Vortex

    Also, have you contacted your Congressional Rep and asked them co-sponsor Ron Paul's Rep. Paul Broun Jr.'s HR 1098 77: Free Competition in Currencies Act?



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