/biz/ - Business & Finance

2018 is gonna be a repeat of 2015 isn't it....

I've decided to make a thread dedicated to this because I've noticed this board is comprised of 5 core groups: (Full disclosure, I am NOT a nocoiner)

1) Shills
2) Crypto Purists
3) The Willfully Ignorant
4) Objective Investors
5) Noobs

1 and 2 will FUD the shit out of this. 3 will be skeptical. 4 and 5 will be keen to listen because what I'm about to tell you is undeniable truth: Bitcoin is treading on very thin ice. I will explain.

As of a few days ago it cost ~$6,200 to mine one bitcoin and the mining power is now rivaling the power consumption of the entire country of Argentina. (This is the 20th largest country by GDP in the world, just so we're clear we're not talking about some African shithole). This cost is only getting higher.

Upwards of 80% of the hashpower of bitcoin is centered in China. For all you noobs & basement dwellers i want to stress something: China is a COMMUNIST nation. Capitalism does not apply. They can shut down bitcoin mining for any number of reasons: namely excessive power consumption - which they have already started (http://www.scmp.com/business/banking-finance/article/2126776/china-plans-curb-electricity-usage-drive-cryptocurrency))

Why does this matter? I'll tell you. If the current hashpower suddenly falls below 50% Bitcoin will enter what is called "chain death spiral". The remaining miners will not have enough hashpower to reach the next difficulty adjustment and this will create a domino effect - bitcoin miners will continue to drop off as bitcoin becomes unprofitable to mine, making the difficulty adjustment all that harder to obtain. It is a fatal flaw in bitcoin... the blockchain will grind to a halt. It won't matter if you have $100 million in BTC - you won't be able to move it.

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I've decided to make a thread dedicated to this because I've noticed this board is comprised of 5 core groups: (Full disclosure, I am NOT a nocoiner)

1) Shills
2) Crypto Purists
3) The Willfully Ignorant
4) Objective Investors
5) Noobs

1 and 2 will FUD the shit out of this. 3 will be skeptical. 4 and 5 will be keen to listen because what I'm about to tell you is undeniable truth: Bitcoin is treading on very thin ice. I will explain.

As of a few days ago it cost ~$6,200 to mine one bitcoin and the mining power is now rivaling the power consumption of the entire country of Argentina. (This is the 20th largest country by GDP in the world, just so we're clear we're not talking about some African shithole). This cost is only getting higher.

Upwards of 80% of the hashpower of bitcoin is centered in China. For all you noobs & basement dwellers i want to stress something: China is a COMMUNIST nation. Capitalism does not apply. They can shut down bitcoin mining for any number of reasons: namely excessive power consumption - which they have already started (http://www.scmp.com/business/banking-finance/article/2126776/china-plans-curb-electricity-usage-drive-cryptocurrency))

Why does this matter? I'll tell you. If the current hashpower suddenly falls below 50% Bitcoin will enter what is called "chain death spiral". The remaining miners will not have enough hashpower to reach the next difficulty adjustment and this will create a domino effect - bitcoin miners will continue to drop off as bitcoin becomes unprofitable to mine, making the difficulty adjustment all that harder to obtain. It is a fatal flaw in bitcoin... the blockchain will grind to a halt. It won't matter if you have $100 million in BTC - you won't be able to move it.

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