Learn to buy anonymous Bitcoin:
https://www.bitcoinuniversity.com/courses/76599-the-ultimate-guide-to-bitcoin
In this video, I discuss the recent news that two KYC’d mining pools (Foundry USA and AntPool) now control over 50% of the Bitcoin network’s hash rate.
So what are the real risks? 51% attacks are difficult both to initiate and to maintain, especially if they require the cooperation of two countries like the US and China that are increasingly having trouble doing anything together. In addition, a 51% attack cannot create fake Bitcoin, steal your Bitcoin, or rewrite the whole blockchain. Empty block attacks are more a temporary nuisance than an existential threat to Bitcoin.
What seems more likely is the possibility of government-imposed censorship on certain transactions. The US government can contact Foundry USA (since it’s regulated by and located in the US) and tell them that they are not allowed to include certain potential Bitcoin transactions in a block.
The US government could also contact AntPool, but they are unlikely to comply unless it’s also in China’s interest to censor a certain Bitcoin transaction.
Likewise, Foundry USA will probably ignore phone calls from China.
What should someone do if their potential Bitcoin transaction is being actively censored (not included in a block) by Foundry or AntPool?
You simply need to wait for a miner from the other 49% of the network to include that transaction in a block.
You could also raise the transaction fee to tempt one of the other miners to include the transaction in a block.
Conclusion:
Even with 51% of the Bitcoin network being controlled by hostile, government-controlled mining pools, anyone would still be able to transact using the Bitcoin network. The Bitcoin transaction fee market ensures this.
Unlike Ethereum (which runs on proof of stake), Bitcoin would be able to recover from these kinds of attacks– and would emerge on the other side even stronger.
Not investment advice! Consult a financial advisor.
KYC Mining Pools Have More Than 50% of Bitcoin Hashrate:
https://www.nobsbitcoin.com/kyc-mining-pools-control-more-than-50-of-bitcoin-hashrate/
SHA-256 hash calculator:
https://xorbin.com/tools/sha256-hash-calculator
Bitcoin mining pool share pie chart:
https://btc.com/stats/pool
A Bitcoin Miner In Every House and Business:
https://www.youtube.com/watch?v=ApxdZG1dP-M&ab_channel=BitcoinUniversity
I am not being paid or otherwise compensated by any company or cryptocurrency project that I mention in my videos. My opinion is not for sale. Please do not contact me with any affiliate or advertising deals.
#Bitcoin
#bitcoinmining
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May I ask why people prefer non-kyc sats too much?
I mean If I use coinjoin about like 15-20 times, It's done for trackers.
What I'm missing?
Love your videos. Thank you!
GUYS GUYS GUYS the official DEX of Bybit is bugged
If you are exchanging Bitcoin>Ethereum you get almost x10, I did a video
Matt, you should start your pool. I guess many will join you
Matthew, you need to do a video on Stratum V2! This video tees up the discussion perfectly. It's something that's not getting enough attention and needs to be discussed more.
Move to Argentina, they seem to like freedom.
Thanks Matt!
I hope they try a empty block attack for the free advertising & cheap sats
You do not need a lot more than 51% to control the network. You only need a simple majority of the hash rate. With the majority of the hash rate, you can mine a heavier chain than the rest of the network while simultaneously ignoring everyone else's blocks and only add blocks onto your chain. Since you control more hash rate than the rest of the network, by simple probability your chain will always eventually become heavier than everyone else's chain, even as they keep trying to add their own blocks onto the end of your chain (you can always ignore those blocks and outpace them since you have a higher hash rate than they do). Thus, as soon as someone reached 51% of the total hash rate, they could immediately leverage that advantage to mine 100% of blocks and scoop up 100% of block subsidies and transaction fees while driving everyone else out of business. Note, however, a mining pool absolutely could NOT pull this off, since as you pointed out the honest miners can simply join another honest pool and instantly cause the bad pool to lose its majority advantage. This could only be pulled off by someone with physical access to the ASICs, which would be virtually impossible. So a technical correction to what you said, but still not a realistic attack vector on Bitcoin.
Idk if youre the best person to ask this. But for someone building a homestead. Do you think it would be worth oversizing your solar setup so that any excess energy generated while the battery is fully charged goes towards mining as opposed to being connected to the grid selling the power back to them?
If you get a percentage of the hashrate you contribute to the pool, why doesn't everybody have a little rig to earn passive income?
I zoned out of this video drinking my morning beer and reading Reddit. Now the video is over, is this a real problem or not?
I mine to Braiins. El Salvador is going to be starting up its own pool, reportedly. Would be interesting if it'll be KYC'ed.
Thanks Matthew 😊
This is something that constantly worries me… That the whole network could just go up in a puff of smoke… But Matt's voice and words are so reassuring 😊
Again you amaze me with your knowledge. You’re so timely with my mindset, just yesterday I was shopping for S19hr’s. But concluded first of all my electricity is entirely too expensive. I am however looking into solar and have the perfect big roof for it. But that only leaves me good for daytime. Thought about buying property with a good stream and generating. The solar is still an option because I can hook into my heat ducts and discard my heating bills. I have to crunch the numbers and like you said keep in mind the miner in time becoming obsolete.
Nice work Matt!
Are there any other engineers or business people interesting in collaborating with me on a Bitcoin miner water heater design/build?
biggest market explosion ever is ABT300X
I bought 5k usd ABT300X. I feel like this token will raise to $10 really easily.