18 Mar '13, 6pm

Meanwhile In Electronic Currency Land, Or Bitcoin 1 - 0 ECB

I've been considering that question for some time now as I dabble in bitcoin trading. As best I can tell there are about 2 ways the authorities can attack the currency: 1) Create a mining capacity greater than the current 40-50 THash/s of the bitcoin network. This represents a significant investment of computing resources, but certainly within the capability of a nation-state. The outcome of this attack would be chaos within the bitcoin community. Witness the disruption caused by last week's blockchain fork. For several hours, the major exchange was not accepting bitcoin deposits. I expect this attack to become significantly harder, and perhaps become unfeasable, as ASIC-mining proliferates and the currency and its associated mining community grows. 2) Block the exchange's DNS and/or access to financial markets. The former would be only temporary, as it wouldn't take long ...

Full article: http://www.zerohedge.com/news/2013-03-18/meanwhile-electr...

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