/biz/ - Business & Finance

>>28630110
>BTC seems to have the reserve status cornered
I think the security of bitcoin as a store of value is laughable for the following reasons:
- highly centralized ASIC technology. Only 2 manufacturers behind most of the hashrate (whatsminer and bitmain, both localized in china). Exponential hashrate growth also makes old generation unable to compete with new. Possible attack vector if more efficient techs are kept secret and used in a long range fork. https://elwoodam.com/wp-content/uploads/2020/07/Cryptocurrency-Mining-Hardware.pdf
- 4 pools control the majority of the network (even less considering selfish mining https://www.cs.cornell.edu/~ie53/publications/btcProcFC.pdf ). While the insensitive to undermine your own hardware investment is low, attackers can hack server operators or gain access through social engineering. It's also possible the chinese gov decides to take over the network through national laws and censor transactions based on political motives.
- boomer codebase full of outdated design flaws and vulnerabilities ( https://en.bitcoin.it/wiki/Common_Vulnerabilities_and_Exposures#CVE-2013-2272 ). first gen approach not benefiting from code formal verification of wallet.
- requires dangerous upgrade to PoS in order to save itself, if miners let this happen, which defeats the point of owning supposedly "simple and timeless" tokens
- centralized leadership and no possible on-chain governance (without giving up on the "muh digital gold" marketing). most devs are on the same narrow social graph of boomers. doesn't even have that many devs since the tech is prehistorical and people will eventually get bored of it.
- no (zero) utility system. gold has real life utility which makes its value hard-bonded to the physical world, while the dollar provides a social structure for project realizations. Bitcoin has none making its insensitive to self-adapt dependent on centralized ownership
Bitcoin is the greatest collective delusion of all the time.