Bitcoin Plunge Exposes a Fundamental Flaw

bloomberg.com

9 points·pdog··7 comments

Weaknesses identified by Bloomberg: [1] It's decentralized; there's no CEO [2] It's open source software people can copy [3] It's subject to competition from new coins

Ha ha ha. These are only problems to institutional people who are investing in Bitcoin as an asset. For people who want a decentralized, censorship resistant medium of exchange, these are all features.

I am confused - What is the flaw exactly? Voting through mining hashrates has been the hallmark feature of cryptocurrencies - the "decentralized" network.

The flaw is that people are nervous their basis for wealth is tied to a democratized system. There's never been anything like it in history.

Maybe it will prove to be a strength. But the BTC/BCH war makes it less than clear. If your net worth can evaporate overnight, people are inherently less trusting of the system.

It's a nice tulip farm though. I think it will top out in the 5 digit range.

> The flaw is that people are nervous their basis for wealth is tied to a democratized system. There's never been anything like it in history.

Isn’t stock like this? Shares get votes and stuff. Or maybe you’re being ironic?

Lol, people from Citi and ING are cited as experts. ;-) Big financial corporations are threatened by Bitcoins.

Its like people from energy companies being interviewed as experts on solar energy.

It's not mentioned in the article, but one flaw is that it makes a 51% attack easier. If many miners switch to BCH then it takes one big mining pool to get above 51%. And then what?

Reply on news.ycombinator.com