I will not talk about cryptocurrencies, blockchain and the technology that is behind everything is world, which is becoming more complex and simple at the same time, I will only remind you of small details to explain myself.
First we must remember the difference between cryptocurrencies of the blockchain companies, remember the most important thing, is the total decentralization.
“Nobody can and nobody should, have the opportunity to make changes in information or transactions”.
Decentralization is achieved through the distribution of servers that conserve and process information, and at least the owners of servers are related to each other with personal or other relationships, better for decentralization, but sadly when the implementation of technology it happens so fast and the first link is the cryptocurrencies, they are put in the first place, many new companies use it ignoring totally the subtleties of the technology, they deceive the people hiding the dangers and risks.
Now I will explain why bitcoin is dangerous, the idea of cryptocurrencies is wonderful, the technology on which it was created even better, but everything that is happening now we owe it totally to bitcoin, but we must understand that the bitcoin itself is not just one technology, the bitcoin accumulates a huge amount of money for itself, it practically became a digital gold as many call it now, in the past people bought gold and gold itself provided other countries with different currency, but now no, now there is not a country that still reinforces its currencies with international reserves, which made the issuance of the world's main currency, the infinite American dollar, the printers of the federal reserve continue to print new dollars without stopping, by when the American banks receive new digital credit appear new amounts, which put in the credits of some companies of people, this is how inflation happens galloping, you can not start saving in dollars because they lose the value you must take credit and buy something because you can not save money to buy the world's printing, the bitcoin and other cryptocurrencies started to fight against this.
In bitcoin a total of 21 million coins can be mined for the year 2140 and right now there are only 16 million dollars mined, if on date 1 the bitcoin is worth 17 thousand dollars that means you can not buy bitcoins that equals one this was devised from the beggining.
A bitcoin is divided into multiple units called Satoshi, the satoshi is the minimum value and is equivalent to one hundredth of a million bitcoins, this means that you can buy a part of bitcoin for up to 100 dollars, the complexity of the extraction increases, the pools of mining are growing, which is bad for the ecology and is an unnecessary expense of electricity, bitcoin does not need such computational power to process transactions, the vast majority is subject to the resolution of mathematical challenges, for which the mines receive their prizes , the complexity of the challenges grows along with the amount of miners that partially increases the price of bitcoin, eventually we have a currency that nobody controls and that is increasing in price and everything started when the price of the bitcoin was less than one cent.
When bitcoin passes the psychological marks its price increases intensively as when it passed the thousand dollars then ten thousand and more. Nobody can stop transactions in the bitcoin network and other cryptocurrencies, nobody can affect the integrity of the information in your account, block it or do something else, this is how most of it is assumed that everything is fine, but there are big concerns and we will see it logically through major dangers.
1st danger.
As we can remember the creator of bitcoin a man or group of people under the name of Satoshi Nakamoto, launched the bitcoin network for the first time to test it and review it, about 7% of all bitcoins are mined at the moment is simply a huge amount up the present time is more than 20000 million dollars and for 2015 this 7% will be approximately of 5 or 10 trillions of dollars, if the money is not calculated inversely the price of that dollar will be estimated in bitcoins and that can happen although sound funny
Today a man who bought a pizza at 10000 bitcoins would laugh too if he had heard that in 2018 it would be equivalent to 100000 million dollars, but it happened anyway.
Ask an economist what would happen if you put 7 percent of all bitcoins in a cryptocurrency exchange in a day; we would witness how quickly not only the value of the bitcoin would collapse, but of all the other cryptocurrencies, also the value may fall several hundred times and cause a catastrophe in the world that would be so great that most of the retail and financial organizations others would have to stop all exchange operations basically the world economy would stop for a day or two.
And what are the chances of this happening, quite large, imagine that you have a room in your house full from floor to ceiling with $ 100 bills and that if you open the door the flow of money flies and you have lived in this house for nine years already, and in these nine years you have passed outside this room without touching a single dollar, you think that a normal person can handle it, almost nobody could, this is how Satoshi Nakamoto would look if he was a person since 2009 there have not been transactions of the nakamoto account, nor a bitcoin has been spent except for small parts that were spent to test the systems in the beginning, it is impossible for a normal person, then who can do that perhaps a group of people maybe a person
But whoever it is, it's not motivated by money and wealth,
These people are united by an incredible goal for which they are willing to give up billions of dollars and wait for more than 10 years everything seems a scenario of a Hollywood movie, a thriller where a group of programmers create a new system digital financial and wait a moment and ruin the world economy, beginning a wave of looting and chaos in which the entire world is turned upside down and becomes something new, but in what? we can not even imagine it but the goals that this group pursues raise serious suspicions and we must understand it and try to prevent this scenario from happening, how can we do it, it is simple a steep increase in bitcoin and its capitalization should not be allowed until you know who exactly that is from Satoshi Nakamoto, if he is a normal person he would have to send the vast majority of his bitcoin to his wallet from which it becomes impossible to make more transactions, basically he should destroy most of it
of their bitcoin, with the danger of such scenario would disappear but it seems unlikely that Satoshi nakamoto will appear and do so.
It takes nine years this man or group waiting for something and have not touched their bitcoins.
2nd Danger:
We believed that bitcoin would destroy the existing financial system, in which 50 percent of all the wealth in the world, is in the hands of 1% of the population, but now we will see that 40 percent of all bitcoins belong only to 1000 people, then what is the difference between the new digital gold and the current financial system, it seems that there is no difference, it is the same unequal distribution, even more unjust than the current one
3rd Danger:
The third danger is related to mining, in the network the bitcoin blockchain there is an algorithm that allows to make changes in transactions in the history of transactions in account balances and other things, as possible, it is possible if someone has the control over 51% of the servers in the bitcoin network, you would say that it is not real that it is one of the main advantages of the bitcoin blogchain, but it is not like that when the bitcoin had just been created it was vital to create new servers with volunteers that they had to be rewarded with something to exploit the power of their computers and that's how mining was created, mining was initially established in the bitcoin algorithm and it was thought until the year 2140, where every certain period of time, the complexity of mining will increase and the more servers there are, the lower the odds of being rewarded for the challenge at the beginning, the bitcoin network was made up of Users who offered their computers almost free when the cost of a bitcoin, was less than a penny later with the growth of bitcoin came the professional miners, then the mining pools where the miners have gathered there the manufacturers of equipment for mining that created systems with the ability to solve the problems of the bitcoin network more quickly than any other computer, no matter how powerful it was then the opportunity to support the bitcoin network and mine from a normal computer disappeared, the mining is a very thirsty process of power to accommodate large mines, there must be very cheap and affordable equipment as well as a very good climatic region the equipment for mining produces huge amounts of heat, which must be absorbed.
In which countries do you think the main powers of the miners are located? it's in china and the percentages look like this
as we can see China is the absolute leader all the powers of the bitcoin network are located in a single country which makes the connection between the owners very close causes great concerns if 51% of the owners meet can make any changes to bitcoin network, mining pools already have brands and names have known the existence of others for a long time and probably even communicate with each other.
Look at this illustration as you can see the main computational powers of the bitcoin network belong to only four mining points which is 51% if you press a hay confabulan they can do whatever they want with the bitcoin when the idea of the bitcoin network surely did not take into account this scenario by design the bitcoin network would have to have been distributed around the world among small independent miners but it took another direction.
Mining is a huge business, which crossed the line of billions of dollars in new crypto currencies, this mining system is not necessary, there are developed projects that are safer and cheaper, where the role of the miner is not so important and there is no need for high power consumption and the bitcoin network already consumes electricity equal to that of a city with a population equivalent to a million people, another aspect is a rapid aging of the mining equipment is the endless race even yesterday Those miners who buy tomorrow will be irrelevant with the emergence of new ones
We saw the main dangers that bitcoin can cause but what we do to avoid everything is simple and difficult at the same time the community has written coins should not increase the price of bilkoin than we think that 57 thousand dollars is a reasonable limit for the bitcoin and safe enough for the market of crypto currencies, because if someone is trying to pull down the bitcoin, all the coins will fall with it, we must assess the situation and not raise it to certain heights that could be dangerous there are more positive scenarios also of those I will tell you in other Post.
