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Crypto Currency Wars: The Economics of Destroying Your Competitors. (self.Bitcoin)

submitted ago by 744408

It has occurred to me that a tiny sliver of bitcoin miners, or even ONE bitcoin mining entity could target a competing digital currency, say dogecoin. If they reassigned their whole mining operation, then in less than 24 hours they could completely fork the dogecoin blockchain. They could forge/steal as many dogecoins as they wanted, and INSTANTLY trade them for bitcoins. Two of the game theory and economic invectives driving this are:

1) For a period of time they would be able to trade the forged/stolen (worthless) dogecoins for REAL bitcoins in NON reversible bitcoin transactions on an exchange.

2) When this attack became publicly known (in a matter of hours) it would COMPLETELY destroy dogecoin- This would increase the value of bitcoin as the ONLY true secure digital currency.

As long as the net gain in quantity and value of the bitcoins that the miner owned who did was greater than the amount of bitcoins they would have mined in the few hours this attack would have taken, they have a huge economic incentive to do this.

edit: dodge != doge

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[–]Pickle_ninja 59 ポイント60 ポイント 前

Oh /u/744408 let me count the ways:
1.) You're a coward. Posting a guide on how to attack a dogecoin which if I'm not mistaken has done nothing but brought out the very best qualities that digital currency as a whole can provide. Doge4Kids, Doge4Mud, Doge4Water...etc. etc.. But furthermore you're doing it anonymously... If that doesn't scream coward, I don't know what does.
2.) You're greedy. You only care about the value of bitcoin which has plummetted mainly due to the same stupid greed as you're spouting right now (Mt. Gox anyone?). You honestly think dogecoin is the reason bitcoin has fallen to $400's after going from $15 to $1200 in a year?
3.) You're scared. You're scared because a coin that's only 4 months old seems to be luring in people you couldn't hope to lure in.
4.) You're an idiot. Dogecoin is Scrypt. Bitcoin is SHA256. But that's not what makes you an idiot. What makes you an idiot is you think that something like this would be positive to bitcoin and digital currencies as a whole.
5.) You're no better than a central bank. That's right. I said it. Banks and governments are so afraid of bitcoin that they're actively passing legislation in many parts of the world CHINA to prevent the spread and adoption, and what you said is basically no different. You're threatened by dogecoin and you want bitcoiners to band together and stamp it out.

Is this really what bitcoin represents now!? Wow how you guys have changed.

[–]hatryd 12 ポイント13 ポイント 前

Sploosh

+/u/dogetipbot 200 doge

[–]The_pun_fart 8 ポイント9 ポイント 前

Best written statement of the day. +/u/dogetipbot all doge verify

[–]Pickle_ninja 4 ポイント5 ポイント 前

Awesome! Thank you pun :)

[–]The_pun_fart 3 ポイント4 ポイント 前

OP must be Angry Coin Guy

[–]dogetipbot 2 ポイント3 ポイント 前

[wow so verify]: /u/The_pun_fart -> /u/Pickle_ninja Ð1560.70000000 Dogecoin(s) ($0.714769) [help]

[–]Doge_Luvr 6 ポイント7 ポイント 前

+/u/dogetipbot 100 doge

[–]Chartlecake 5 ポイント6 ポイント 前

Well said.

+/u/dogetipbot 100 doge

[–]Bmxuoe 5 ポイント6 ポイント 前

I want to tip this comment so badly!

[–]Pickle_ninja 3 ポイント4 ポイント 前

+/u/dogetipbot 200 doge

[–]Bmxuoe 4 ポイント5 ポイント 前

+/u/dogetipbot 200 doge

[–]Bmxuoe 4 ポイント5 ポイント 前

I so just gave that back to you. I am not a smart man. But I know what doge is.

[–]TwistedMexi 1 ポイント2 ポイント 前

+/u/dogetipbot 200 doge for laffs.

[–]Im-Probably-Lying 4 ポイント5 ポイント 前

op has issues, but in no way does he represent 100% of btc users.

just keep that in mind :)

/u/changetip $1

[–]Pickle_ninja 2 ポイント3 ポイント 前

I don't know if i can trust your statement by your username lol.

Thankyou for the tip :)

[–]changetip 0 ポイント1 ポイント 前

The tip for 2.2160 milli-bitcoins ($1.00) has been confirmed and collected by /u/Pickle_ninja

What's this?

[–]Shibeismyname 0 ポイント1 ポイント 前

Good reminder! One selfish jerk in no way should be seen as a representative of an entire community.

+/u/dogetipbot 500 doge verify

[–]dogetipbot 0 ポイント1 ポイント 前

[wow so verify]: /u/Shibeismyname -> /u/Im-Probably-Lying Ð500.00000000 Dogecoin(s) ($0.230418) [help]

[–]PieMan2201 2 ポイント3 ポイント 前

All true. +/u/dogetipbot 5 doge verify

[–]dogetipbot 1 ポイント2 ポイント 前

[wow so verify]: /u/PieMan2201 -> /u/Pickle_ninja Ð5.00000000 Dogecoin(s) ($0.00230418) [help]

[–]Shibelium 2 ポイント3 ポイント 前

+/u/dogetipbot 500 doge verify

[–]dogetipbot 1 ポイント2 ポイント 前

[wow so verify]: /u/Shibelium -> /u/Pickle_ninja Ð500.00000000 Dogecoin(s) ($0.230418) [help]

[–]marketminded 24 ポイント25 ポイント 前

"COMPLETELY destroy dogecoin- This would increase the value of bitcoin as the ONLY true secure digital currency."
such words. Many destroy never. Dogecoin has something Bitcoin lacks. Community. We'll accept you with open paws and tips when you decide to change your mind.

[–]carlishio2 5 ポイント6 ポイント 前

I won't, OP sound too greedy. We don't need people like that.

[–]1xhopeless 25 ポイント26 ポイント 前

27 days old account. The sort of morons that have given the bitcoin community a bad name. How long have you been involved in BTC?

Why don't you crawl back in your cage and finish your evolution process like everyone else.

[–]gooberdude 10 ポイント11 ポイント 前

I'm generally against crossposting links to /r/dogecoin and having a mob of them inevitably come over and up/downvote r/bitcoin's posts. But in this case, wtf did you expect?

Also 1) That's not how 51% attacks work, you can't create coins out of nowhere or steal coins that don't belong to you and 2) Bitcoin miners are all running SHA256 ASICs and have nowhere near the Scrypt mining capacity to attack Scrypt based coins.

[–]cipher_gnome 10 ポイント11 ポイント 前

With a 51% attack you can not move coins you do not own. You still need the private keys for that. Without the private keys you have no ability to sign the transaction. Without the signature the transaction is invalid.

[–]FoxShibe 6 ポイント7 ポイント 前

I'm fairly sure you would be wasting your time. The shibes on /r/dogecoin are probably fanatical enough to keep mining coins even if the value got down to 1 liteoshi.

In any case, a double-spend attack on the network is a rather puny attack.

[–]edflyerssn007 8 ポイント9 ポイント 前

Lol....SHA256 vs Scrypt is all you need to know. And good luck getting 70+ gh/s of scrypt mining power.

[–]bullzeyeza 8 ポイント9 ポイント 前

Aw, poor man. here, have some doge. Join us, and you might one day find happiness.

+/u/dogetipbot 50 Doge verify

[–]dogetipbot 0 ポイント1 ポイント 前

[wow so verify]: /u/bullzeyeza -> /u/744408 Ð50.00000000 Dogecoin(s) ($0.0230308) [help]

[–]Arthur_C_Doge 0 ポイント1 ポイント 前

You're a good person :)

+/u/dogetipbot 100 doge verify

[–]dogetipbot 0 ポイント1 ポイント 前

[wow so verify]: /u/Arthur_C_Doge -> /u/bullzeyeza Ð100.00000000 Dogecoin(s) ($0.0460836) [help]

[–]lepthymo 7 ポイント8 ポイント 前

I'm glad to see this get downvoted. We're all in this together you know.

[–]chinawat 7 ポイント8 ポイント 前

Most altcoins, including dogecoin, do not use the SHA256 algorithm that bitcoin uses, so redirecting the high-tech ASICs bitcoin miners currently use to those altcoins would be completely ineffective.

[–]totes_meta_bot 5 ポイント6 ポイント 前

This thread has been linked to from elsewhere on reddit.

I am a bot. Comments? Complaints? Send them to my inbox!

[–]shemnon 4 ポイント5 ポイント 前

Happened to aurora coin, at least the "time warp" part of the attack:

https://bitcointalk.org/index.php?topic=546338.0

Other coins have had large pools move into other coins, caused the difficulty to go sky high, and then exited. This caused the coin to become all but unminable. I forgot which one, but one coin had to hard fork to a different difficulty adjustment protocol because of it. This figured into the time warp attack against aurora coin.

edit: I good grammar.

[–]lepthymo 0 ポイント1 ポイント 前

That might have been fedoracoin.

[–]Ricky81682 0 ポイント1 ポイント 前

I think it was mooncoin and some others. Changing to a immediately changing difficulty rather than per # blocks.

[–]marketminded 8 ポイント9 ポイント 前

WOW such love. many interest.

[–]sue-dough-nim 3 ポイント4 ポイント 前

Would this work considering most exchanges wait a few confirmations before crediting funds?

[–]notbadlol 3 ポイント4 ポイント 前

wouldn't work very well.

they could steal doge from an ewallet, but afaik clients now show warnings if they detect a fork so it would be noticed immediately and the stolen coins would lose all value before they could be re-deposited on an exchange.

value might recover though, so it is possible if are into doge for the long run. but dogecoiners could revert the fork and take back so coins so you gain nothing.

and then you'd have some explaining to do to your pool members about why they're not receiving any block rewards...

[–]phobosbtc 1 ポイント2 ポイント 前

also a 51% attack doesnt allow you to steal other peoples coins

[–]notbadlol 0 ポイント1 ポイント 前

yeah i thought he was informed enough to mean "stealing coins by double spending"

[–]Electr0freak 3 ポイント4 ポイント 前

Aaaahahaha!

[–]MidnightTide 1 ポイント2 ポイント 前

When this attack became publicly known (in a matter of hours) it would COMPLETELY destroy dogecoin- This would increase the value of bitcoin as the ONLY true secure digital currency.

It is that kind of shit that reduces confidence in crypto, every community. Oh look at that, some kids can get together and destroy the value of a currency. Also, what OP is suggesting is simply creating a bubble.