8/ Factor #1: Differences in electricity costs will persist due to geographical/political reasons. A number of areas on Earth, not one, will enjoy the cheapest electricity rates, due to either natural advantages or local subsidies. There will be no monopoly on electricity.
18/ The entire paper is built on the assumption that the cost of 51% attacks is flow-based, not stock-based. So if the flow-based assumption is incorrect, the collapse theories advanced by the paper are invalid.
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19/ P.S.: The other thing the paper hugely underestimates is Bitcoin community's ability in dealing with such an attack. h/t
@nic__carter One only has to look at last year's UASF movement in dealing with Segwit2x. But this is a separate topic.Show this thread -
20/ P.S. #2: I want to say that regardless of the validity of the points discussed here, Budish's paper raises a very important topic. It forces us to look deeper into Bitcoin's security model & likely develop better pricing models. For that, it's a huge win.
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