Bitcoin is a famous cryptocurrency. Numerous people have spent in Bitcoin and made money. But is it plausible to stop Bitcoin? The truth is that various liberal governments don’t relish Bitcoin because it endangers their monopoly overprinting money. And nobody wants to lose monopoly. Since the government and banks don’t like it, is it possible to destroy Bitcoin? Let’s dissect.
What Is Bitcoin?
Bitcoin is a peer-to-peer network that isn’t regulated by a central body. It’s an online money, and the transactions are done without the embroilment of banks. You can utilize them to buy services and goods online anonymously. You can append Bitcoins to a digital wallet. Standing close to $70 billion, it’s an enormous name and is probably not easy to shut down. (also see, What Is Bitcoin and How to Use it for Secure Online Transactions)
How To Destroy Bitcoin
Admittedly not easy, but also not wholly implausible, several points could destroy Bitcoin.
Destroying Everything Along the Way
Since Bitcoin is an online money, if the states determine to stop the internet; they can simply wipe off Bitcoin. In point of fact, they can also efface most of the other banking; because most of the banking setup is online now. There is another issue that gets into the game here – how do you score out the internet? There has to be a high-level partnership between governments and big businesses. And this would decline the economies of the countries as well; so it’s surely not a feasible solution.
Attempt To Stop Mining
Bitcoin miners are personages who work crypto hash functions to get compensated with Bitcoin. These individuals have specialized computer programs that interpret complex encrypted notes. If these miners could be scored out, no more Bitcoins will be created, which could bring down the system. While it might be expedient to stop some apparent miners, it would imply less competition and therefore more earnings for covered miners. If the government strives to shut down miners, the probable outcome will be miners screening behind VPNs to mine more.
Make Bitcoin Illegal
It’s hard to clamp down on people who patronize in Bitcoin because of its anonymous quality. People can barter and trade in this cryptocurrency without disclosing their erudition. The maximum authority a government can execute is not enabling people to accept Bitcoins in buying things online. China just declared all virtual currency unconstitutional which implies you cannot purchase Bitcoin openly in China. However, it will still be practiced in obtaining unlawful things such as drugs.(also check, How To Buy Bitcoin: A Guide For Beginners)
Create Empty Blockchain
One way to destroy Bitcoin is by making it unprofitable for people to join in mining. Anyone can engage anonymously in Bitcoin mining. If the blocks are filled with void transactions, miners will just be mining empty blocks. With empty blocks, the blockchain couldn’t be employed to transact, and without transactions, the Bitcoin system will collapse.
This accept the longest blockchain to be valid, and so if an industry takes control over more than moiety the hashing power and generates a blockchain of empty blocks that is more than the currently predominating chain of legitimate miners; Bitcoin will come to a standstill. This is the only viable way to destroy Bitcoin.
How To Create An Empty Blockchain
Here’s how you can gradually destroy Bitcoin.
Each Bitcoin block has a maximum size of 1MB. The entire hash power of the Bitcoin network is about 5.7X10 to the power of (18) each second. To generate a blockchain of empty blocks, you’d require more than 50% of the increasing computing power. As more miners attempt to mine Bitcoin; it will become more complicated. And as it will begin growing unthrifty, it will become simpler to take over the network. To start this initiative, you would require more than $400 million.
Bitcoin employs a lot of electricity but it is still less than the power consumption of a small city so that it can be easily achievable. To ensure the Bitcoin miners keep operating, you would need about $190 million per year to retain the Bitcoin blocks empty. The attack requires running until most miners fail.
The difficulty with such an initiative is that you might have power over Bitcoin, but since the Bitcoin network will be stagnant after the attack, there will be no benefit of the currency you have. So essentially, all the money you contribute will go in waste and will not produce any ROI. A big company might not want to invest in the attack as it would mean losing a large chunk of their share. (also read, Bitcoin Mining Software in Famous Websites Hijacks Computers).
What If Such Attack Actually Executes?
What if a group of states actually do launch such an attack? Can the Bitcoin association do something about it? To keep it safe, the association could need all miners to have transactions in each block. Of course, the attacker could score bogus transactions between Bitcoin.