Author: Gregory Maxwell 2013-07-24 19:35:45
Published on: 2013-07-24T19:35:45+00:00
The email conversation between zooko and an unknown party discusses the potential risks associated with a consensus failure in Bitcoin. The outcome of such an event could be devastating, causing people to lose money even in the absence of malice. The social and technical ramifications would be challenging to predict, but at a minimum, they would not be good. A severe splitting event could lead to large amounts of Bitcoin being stolen through reversals, which would create significant problems for the system. While the most dire outcomes are unlikely, it's still important to recognize that risk mitigation is crucial. Bitcoin is a novel technology that lacks many of the resources available to other systems, such as a central bank to manage inflation. Therefore, it's important to be frank about the range of risks involved. It's possible that due to some technical screw-ups, Bitcoin could become worthless overnight. However, it's also essential not to overestimate the risks and call doom on anyone who wants to make changes to the system. In conclusion, navigating the risks associated with Bitcoin is hard, and it's better to err on the side of caution and overestimate the risks slightly rather than underestimating them. While it's challenging to predict the full range of outcomes associated with a consensus failure, it's clear that risk mitigation is vital to ensure the long-term viability of the system.
Updated on: 2023-05-19T17:11:40.986892+00:00