Bitcoin is the most powerful Cryptocurrency in the world and is known as the king of this field. The Cryptocurrency has overcome every obstacle since its arrivals, such as the CVE-2010 bug (the creation of 184 billion bitcoin units), the Mt.Gox exchange robbery, the fork bitcoin threshold, and the emergence of poker sites; But that does not mean that we have eliminated all possible attacks on Bitcoin, and Bitcoin has a 100% chance of winning a global currency, a currency that will remain for thousands of years.
Moises Cassab, in his article published on his Medium website, looks at ways in which bitcoin can be brought to extinction.
Mining power is centralized
All mining infrastructure is focused. I will continue to substantiate this claim.
A) The majority of extraction machines are produced by Bitmain. The company can stop its production devices using backdoor or remote access to miners, something we’ve seen before.
B) 8 Extraction Pools Control the 85% hash power (processing power) of the bitcoin network.
C) All miners that make up more than 70% of bitcoin mining power are housed in one room. This had already happened in the Year 2016 when we were about to take a hard fork, and the Miners, together with network developers in Hong Kong, came together to discuss the fate of Bitcoin.
D) The highest amount of hash power in a country that is generally opposed to bitcoins and freedom.
In short, all bitcoins mining infrastructure is highly centralized.
If the majority of the processing power of the mining network is in the hands of a certain number of people, the following attacks on Bitcoins may occur:
- 51% attack (network control with over 50% processing power)
- Chain Reconstruction (Reversing or Preventing Transaction)
- Death spiral – Shutting down farms one way and reaching hash rates to zero)
- Eclipse Attack (Eclipse)
Also, restarting a new proof-of-work algorithm itself creates other problems.
Making a profit from falling bitcoin prices on futures platforms and moving to other chains
Satoshi Nakamoto wrote in White Pepper Bitcoins to say that attacking the Bitcoins network does not benefit anyone, because it can extract Bitcoin with the same processing power it intends to attack Bitcoins. Slow income.
The key point in Nakamoto’s assumptions was that the miners had the motivation to be good actors rather than being destructive, and their success tied to Bitcoin’s success.
But this is no longer the case now. Falling prices can now be profited on sites such as Bitmax or Businesses using futures.
Miners can attack the bitcoin chain. During the attack on Bitcoins, the Shorts will be shortlisted and will gain huge profits as Bitcoins collapses. After the attack is over, they go to another chain and try to extract it.
Untested security model, fees issue
Every four years, if bitcoins prices do not rise, with Hawking halving the extraction fee, bitcoin’s security budget will be halved. Bitcoins fans say in response to the problems that Hawking can create for Bitcoin:
A. We don’t have to worry about anything until Bitcoin minus bonus in the year 2140. However, in terms of usage, the security budget for the 9-year period will be reduced by 88%, from 12.5 Bitcoin to 1.5 Bitcoins, and to 0.39 Bitcoins per block over the 17 year period. In fact, there will be a 97% decline in the current figure.
B) The price of bitcoins will increase by more than 2 times after the next hovering. The problem with this thinking is that, along with the price, the reward for disrupting the bitcoin business process will increase. In addition, following this logic can mean that in the ninth Hawing, the value of bitcoins is higher than the total value of GDP in all countries.
In my opinion, there are only three ways to overcome this problem:
A) Using Stock Proof Algorithm (PoS) that will never happen!
B) Breaking the 21 million unit limit and stopping Hawing and earning extraction bonuses based on the current model that will never happen!
C) Take some of the bitcoins extracted by Satoshi Nakamoto and then use them to inflate the bitcoin. An issue that can happen.
D) Let the fees increase. This is the best way, but the problem is that if we want to have 12.5 Bitcoins as a commission per block, given the 100,000$ Bitcoins price, each transaction will cost about 340$.
What we do know is that we can’t have it both ways, miners need to be encouraged either by money or by subsidy. So, in the end, we end up either by raising commissions or by pushing other currencies out of Bitcoins (for hash power). In this case, the way to attack Bitcoins will be open.
Also, if the network charges are high, the Lightning network is a costly alternative for most Bitcoins users. Because people are reluctant to use their multi-day earnings to pay for locking and unlocking their bitcoins in Lightning pay channels.
Possible Attacks: Higher-inflation currencies will have higher hash power, which can trigger attacks such as the one described above. High fees, on the other hand, make bitcoins network unusable for many, making this Cryptocurrency a user-free product.
Bitcoin disappears with a slow death for lack of innovation
This is both an advantage and a problem. Bitcoins won’t change, and that’s a positive thing.
- ChangeTip was shut down and Airbnb bought it.
- Colored Coins methods were wonderful, but externally, they led to the emergence of Ethereum and ERC20 tokens and penultimate seasons and eventually disappeared.
- Bitcoins competitors promised smart contracts, but the main developers of Bitcoins were all they could do was change OP_RETURN from 80 bytes to 40 bytes.
- Blockstream had promised to create a series of side chains in which bitcoins is the main layer, and all the experimental designs inside chains are executed, a design that made us unreliable and made many successes if implemented. He earned. Now they are virtually giving up and are running some sort of side-chain where all nodes will be approved by the streaming block and will operate based on hardware from the company.
- Rootstock is a related side chain in which you trust a few select validators.
Now, only the Lightning network is left, and it should be interesting to see how it works against fees. Joseph Poon, a co-editor of Whitepaper, has also released Bitcoin and is working on Ethereum.
There is a danger here that Bitcoins will never reach the public and be destroyed by slow death.
Bitcoins is at best semi-anonymous. If we are to face big government rigidity, all satellite nodes and decentralization programs are useless, because if institutions can easily identify node owners, they can defeat them with a deceptive map.
In the year 2018, 70% of Bitcoins Core code contributions were made by 10 people, and 97% of nodes used the Bitcoins Core client. We can convince ourselves that all Bitcoins users check all 300,000 lines of code and agree on all changes. But in a realistic way, we all follow what Bitcoin Core developers have to offer.
Bitcoins has no resistance to quantum computers, and quantum computing is by no means an unattainable dream. Quantum computers exist, they work, and they are still not powerful. However, this does not mean that they will not become stronger in the coming years.
It is not scalable enough to spread among the people
At best, bitcoins was able to process 3763 transactions per block. This means that Bitcoin can process 145.223.280 transactions per year, which is about 0.02 transactions per person per year. This way, even if we have cheap commissions and the lightning continues to work, all the people of the world can open and close only one lightning channel. In that case, it will take about 96 years for Bitcoin to be worldwide.
Even if bitcoins was used as a reserve of value, which is used, even if bitcoins (BTC) people bought and traded only one transaction and no longer moved it, it would take around 48 years to get worldwide.
And Bitcoins is still computer money!
Black swans, unknown of unknowns
Not everything on this list, such as a huge asteroid colliding with the ground or a killer artificial intelligence. Actually, things we don’t know. So, as I promised, everything that destroys Bitcoins was in this article.
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