Is the Bitcoin economy to implode anytime soon? (New academic paper)
Just wanted to bring this new paper to you. If going to comment, please engage with the arguments. Abstract This paper discusses the economics of how Bitcoin achieves data immutability, and thus payment finality, via costly computations, ie "proof-of-work". Further, it explores what the future might hold for cryptocurrencies modelled on this type of consensus algorithm. The conclusions are, first, that Bitcoin counterfeiting via "double-spending" attacks is inherently profitable, making payment finality based on proof-of-work extremely expensive. Second, the transaction market cannot generate an adequate level of "mining" income via fees as users free-ride on the fees of other transactions in a block and in the subsequent blockchain. Instead, newly minted bitcoins, known as block rewards, have made up the bulk of mining income to date. Looking ahead, these two limitations imply that liquidity is set to fall dramatically as these block rewards are phased out. Simple calculations suggest that once block rewards are zero, it could take months before a Bitcoin payment is final, unless new technologies are deployed to speed up payment finality. Second-layer solutions such as the Lightning Network might help, but the only fundamental remedy would be to depart from proof-of-work, which would probably require some form of social coordination or institutionalisation. Personally, I'm no longer in the Proof-of-Work world. I moved to Proof-of-Stake long ago. PoW are getting 51% attacks more often too. Might implode anytime soon.
[ Bitcoin ] You Can't Fake Bitcoin: CBP Seizes $3.6M in Counterfeit Notes Along Canadian Border
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"There are no controls over how many Bitcoins are issued, and digital counterfeiting rings have been busy replicating the currency at “Bitcoin farms”, and a few have been apprehended." This "Journalist should be fired on Monday Morning"
05-29 14:34 - 'The tragic irony of the George Floyd murder is that 911 was called because he was using "counterfeit" money. Meanwhile the Fed money printer goes Brrrrr all day long... but that's "legal" counterfeit. The...' (self.Bitcoin) by /u/the420chronicler removed from /r/Bitcoin within 3-13min
04-22 21:05 - '💳💳💳FAST FAKE ID SERVICES||BUY FAKE IDS||REAL PASSPORTS, UNDETECTABLE COUNTERFEIT BANKNOTES, CREDIT CARDS AND DRIVERS LICENSES||WORLDWIDE SHIPPING TO CANADA,AUSTRALIA ,USA AND EVERY STATE.OUR NOVELTY IDS INCLUDES UV...' by /u/TopCounterfeitMoney removed from /r/Bitcoin within 49-59min
''' 💳💳💳FAST FAKE ID SERVICES||BUY FAKE IDS||REAL PASSPORTS, UNDETECTABLE COUNTERFEIT BANKNOTES, CREDIT CARDS AND DRIVERS LICENSES||WORLDWIDE SHIPPING TO CANADA,AUSTRALIA ,USA AND EVERY STATE.OUR NOVELTY IDS INCLUDES UV LIGHTS AND HOLOGRAMS,SCANS AND PASSES THE BLACKLIGHT TEST. WHATSAPP +19375891653💳💳💳 ''' Context Link Go1dfish undelete link unreddit undelete link Author: TopCounterfeitMoney
Why would you take fiat money as payment for your goods and services. I googled " Buy counterfeit currency" and got literally hundreds of websites offering undetectable forgeries. Accept the one and only real Bitcoin instead.
Disclaimer. I am not suggesting that you try to purchase forged currencies. This would be clearly illegal advice and an illegal act in purchasing said paper. What this illustrates is how detrimental it is to accept worthless fiat money.
As Brazilian daily news outlet Sputnik and others reported on Sept. 10, law enforcement succeeded in bringing down the ring, which sold fake notes on the dark web in return for Bitcoin (BTC). In action since 2017, the operation created €1.3 million in fake money. The leader, from Portugal, was found and extradited from Colombia this week. According to police, the notes were some of the best quality forgeries they had encountered, bearing features such as watermarks and holograms. “Often they are only detected when entering bank deposits. In terms of normal trade, they are banknotes that pass quite easily,” police investigation coordinator, Luís Ribeiro, said in a statement quoted by Sputnik.
Swapping easy money for hard money
The news is conspicuous for highlighting the perpetrators’ preference for unforgettable hard currency — Bitcoin — over printable fiat. It is the second cautionary tale to emerge from Europe in recent weeks, after alarm at the discovery of fake gold bars in the vaults of some of the best-known institutions worldwide. As Cointelegraph reported, around 1,000 spurious bars have been discovered, but experts fear the complete supply is much larger. “Bitcoin fixes this,” Francis Pouliot, founder of Canadian Bitcoin consumer platform Bull Bitcoin, subsequently commented, alluding to the ability of individuals to verify Bitcoin transactions by running a full network node.
Anti-counterfeiting. Bitcoin uses encrypted public keys, hashing, and technology such as digital signatures to prevent counterfeiting.. Bitcoin uses encrypted public keys, hashing, digital signatures, and other security measures used on the Internet and corporate systems, and the system itself has robust security. In the world of supply chain management, blockchain offers many solutions to old problems such as reducing wastage through spoiled products. However, some industries suffer from worse problems in this area. The pharmaceutical supply chain has an ongoing battle — to combat the issue of counterfeit drugs entering the market. Anti-counterfeiting. Bitcoin uses encrypted public keys, hashing, and technology such as digital signatures to prevent counterfeiting.. Bitcoin uses encrypted public keys, hashing, digital signatures, and other security measures used on the Internet and corporate systems, and the system itself has robust security. Virtual currency has just started to explode in the past few years and the Bitcoin is definitely the leader of the pack. The Bitcoin is a form of virtual currency that can be used to buy and sell goods online, with more and more retail sites adding the ability to accept Bitcoin every week. But what about counterfeiting Counterfeiting criminal statutes: It is illegal to counterfeit both U.S. and foreign currency, but current monetary laws do not mention digital currency. Given that Bitcoin is a peer-to-peer transaction without any formal involvement by a regulatory body or a government, it is unclear if there is a role or responsibility for the U.S. legal ...
Everledger Pitch by Leanne Kemp in Blockchain / Bitcoin category at European FinTech Awards 2016
Everledger Pitch by Leanne Kemp in Blockchain / Bitcoin category at European FinTech Awards 2016 Alex van Groningen ... money laundering and counterfeit goods. Leanne has over 20 years in emerging ... The self-declared "world's greatest counterfeiter," Frank Bourassa, printed $250 million in fake US currency until he was caught by an undercover cop in 2012... Forking bitcoin is like counterfeiting it...but legally! A video about how forking ethereum or bitcoin or any cryptocurrency blockchain is like how counterfeiting bitcoin works. Wondering why everyone is so sure bitcoins can't be copied? They're just data, right? Wrong. This short video is a concise answer to why bitcoins cannot be counterfeited. Ready for more bitcoin ...