Why Roger Ver is Wrong about Scaling Bitcoin

“It will serve as a giant economic stimulus package for the world, accelerate innovation, reduce wars, make the poorest 10% better off, overthrow corrupt governments, and raise happiness.” — Brian Armstrong

This is all well and good and sounds like a summation of the predictions made by Austrian economists about the benefits of sound money on a global scale.

  • A hard fork requires waiting for sufficient consensus.
  • Risk of catastrophic consensus failure[7] (because it requires a hard fork)
  • An emergency hard fork that can achieve consensus can be deployed on a short time period if needed.[8]
  • Orphan rate amplification, more reorgs and double-spends due to slower propagation speeds.
  • European/American pools at more of a disadvantage compared to the Chinese pools[why?]
  • "Congestion" concerns can be solved with mempool improvements including transaction eviction.
  • No amount of max block size would support all the world's future transactions on the main blockchain (various types of off-chain transactions are the only long-term solution)
  • Fast block propagation is either not clearly viable, or (eg, IBLT) creates centralised controls.
  • Larger blocks make full nodes more expensive to operate.
  • Therefore, larger blocks lead to less hashers running full nodes, which leads to centralized entities having more power, which makes Bitcoin require more trust, which weakens Bitcoins value proposition.
  • Bitcoin is only useful if it is decentralized because centralization requires trust. Bitcoins value proposition is trustlessness.
  • The larger the hash-rate a single miner controls, the more centralized Bitcoin becomes and the more trust using Bitcoin requires.
  • Running your own full node while mining rather than giving another entity the right to your hash-power decreases the hash-rate of large miners. Those who have hash-power are able to control their own hash power if and only if they run a full node.
  • Less individuals who control hash-power will run full nodes if running one becomes more expensive[9]

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