Re:Blockstack: A New Decentralized Internet [pdf]
by nugget on Saturday June 24, 2017 @04:34PM
(#14627348)
Run the math for Ethereum and it's even crazier. Something like $15m in cloud computing resources and you can control the eth network valued at >$30 billion. For this reason I can't imagine "shorting" these cryptocurrencies will be possible any time soon as the incentives for attack would be too great. The price asymmetry could resolve in a number of different ways and it will be interesting to watch how it unfolds.
Re:Blockstack: A New Decentralized Internet [pdf]
by haakon on Saturday June 24, 2017 @05:18PM
(#14627529)
> I can't imagine "shorting" these cryptocurrencies will be possible any time soon
You can short Bitcoin, Ethereum and many other cryptocurrencies on a number of exchanges right now.
[dead]
Re:Blockstack: A New Decentralized Internet [pdf]
by nyolfen on Saturday June 24, 2017 @08:08PM
(#14627993)
judging by this guy's comment history i think he's trying to pump altcoins
Re:Blockstack: A New Decentralized Internet [pdf]
by merkaloid on Saturday June 24, 2017 @04:51PM
(#14627419)
It would be valued as something closer to 0 if you did take it over.
Re:Blockstack: A New Decentralized Internet [pdf]
by IamCarbonMan on Saturday June 24, 2017 @05:12PM
(#14627502)
If you take over the entire thing yes. But the DAO hack demonstrates how easy it can be for an attacker to make off with a whole lot of ETH.
Re:Blockstack: A New Decentralized Internet [pdf]
by mquander on Saturday June 24, 2017 @09:54PM
(#14628238)
It does? That attacker made off with 0 ETH. Admittedly they made off with some ETC.
Re:Blockstack: A New Decentralized Internet [pdf]
by runeks on Sunday June 25, 2017 @02:16AM
(#14628884)
> Bitcoin network hashrate is currently around 550.000TH/s[1]. An asic miner with 4.73TH/s claimed capacity can be bought for $500 [2]. With a budget of less than $100M you could have similar capacity as current bitcoin network.
The network hashrate is 5 million TH/s and, believe it or not, there aren't a million of these ~$500 devices you mention up for sale. You would have to produce them yourself, with fierce competition.
Many have looked at the numbers and thought "I can do that", and when their mining product finally ships, the difficulty has increased by a factor of 10x. Leaving them with 5% network hashrate instead of 50%, because it turned out they weren't the only ones thinking "I can do that".
One thing that bothers me a bit is that it is hard to tell how decentralized these technologies really are. Especially when you go into direction where commodity hardware becomes useless and you need specialty equipment to do meaningful mining, there's a risk that the power falls into few hands.
This is probably not an issue for bitcoin, where the incentive to cheat would be to just gain monetary profits. In some other blockchains, serving different purposes things might be different. Governments with their deep pockets might be interested in building up capacity to be able to perform covert ops.
[1] https://bitcoinwisdom.com/bitcoin/difficulty [2] https://www.bitcoinmining.com/bitcoin-mining-hardware/