Hijacking Bitcoin: BGP routing attacks on cryptocurrencies ...

Future concerns for the Bitcoin Network.

Hi /Bitcoin ,
I am open to correction on any areas I have have misunderstood, but I do have some concerns for the future of mining and consensus.
Miners receive BTC for mining new blocks, these can be physical individual miners or logical mining pools. Block rewards will continue diminishing until all Bitcoins are in circulation, ETA the year 2140.
In the run up to this date, Bitcoin mining will become less and less feasible, and assuming BTC finds a stable price prior to this date then profitability will also decline. Without a large number of miners, the Bitcoin network could become more and more centralized over the years, allowing a single entity to reach consensus once more. Therefore the Network could be hijacked, resulting in the end of Bitcoin.
In an alternate scenario, mining fees continue to increase to combat the diminishing profitability of block rewards. As you are all aware, mining fees are already becoming a growing concern and are accelerating the deflationary nature of Bitcoin, i.e a wallet with $20 worth of BTC may find it impossible to move this BTC. This leads to an eventuality where millions of users can own and store BTC, but are unwilling to transact with it. The reduction of transactions reduces the mining fee income and profitability of miners, who cease operation and the Network becomes more centralized than ever.
In a final scenario, these concerns are addressed early and maintaining the hash power of the network becomes a recognized public utility, and Service-Provider are delegated the responsibility of hosting mining farms to validate transactions. Similar to BGP, the running of the full Internet Routing Table becomes a Service-Provider task. Individual miners cease operations, and the Network becomes more centralized than ever.
With the current state of the protocol, I see no future scenario where the Bitcoin Network can remain both usable and decentralized. Without one, the other is worthless.
Any feedback is appreciated.
submitted by Bloodwank to Bitcoin [link] [comments]

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