The necessity for each wallet to contain the entire block chain.
This isn’t actually an issue. Lite wallets exist.
Governments have never seemed keen to give up their monopoly on the money supply.
Indeed, they would prefer not to give up this monopoly. Earlier attempts at creating things similar to Bitcoin such as e-gold failed because they lacked the decentralization component, and could be attacked by governments. However, it is extremely difficult for Governments to kill bitcoin. They can make it dangerous to use in their localities, but thats about it. At the present time it seems that most governments are not even attempting to take this action. Bitcoin has been legitimized sufficiently in the US, and has hundreds of millions of dollars of VC funding poured into its infrastructure now, so it would be difficult for the government to now do a 180 and try to ban its use.
The computing power wasted by mining.
Or as you noted, ‘used inefficiently’. I agree this is a problem. The question is: is there actually a better answer out there which does not require this. If a solution existed which was equal in ability to secure the network but required less computaiton power (energy), then it would clearly be superior. There are a number of other methods being experimented with in altcoins. I don’t think there is a clear answer right now. (But there are definitely lots of people who believe strongly that proof of work is the only way, and some people who believe strongly that it is nothing but a waste of energy).
After reading about BC and 51% attacks, I am beginning to think “the network effect is the mind killer” might be a more general expression of “politics is the mind killer”.
If you mean that lots of people tend to become devoted to one blockchain, and start treating it like a religion where it is the only true blockchain and all others must die, then yes there are people who do that. (Both for bitcoin and for others). It can be mind killing for many. Tribalism is the mind killer!
That said the size of the network of adopters of a blockchain ledge is probably the most critical measure of its success. Bitcoin has grown significantly over the years in this regard which is why it is valuable. So when people quote network effect as being a big deal, they are correct.
This isn’t actually an issue. Lite wallets exist.
Indeed, they would prefer not to give up this monopoly. Earlier attempts at creating things similar to Bitcoin such as e-gold failed because they lacked the decentralization component, and could be attacked by governments. However, it is extremely difficult for Governments to kill bitcoin. They can make it dangerous to use in their localities, but thats about it. At the present time it seems that most governments are not even attempting to take this action. Bitcoin has been legitimized sufficiently in the US, and has hundreds of millions of dollars of VC funding poured into its infrastructure now, so it would be difficult for the government to now do a 180 and try to ban its use.
Or as you noted, ‘used inefficiently’. I agree this is a problem. The question is: is there actually a better answer out there which does not require this. If a solution existed which was equal in ability to secure the network but required less computaiton power (energy), then it would clearly be superior. There are a number of other methods being experimented with in altcoins. I don’t think there is a clear answer right now. (But there are definitely lots of people who believe strongly that proof of work is the only way, and some people who believe strongly that it is nothing but a waste of energy).
If you mean that lots of people tend to become devoted to one blockchain, and start treating it like a religion where it is the only true blockchain and all others must die, then yes there are people who do that. (Both for bitcoin and for others). It can be mind killing for many. Tribalism is the mind killer!
That said the size of the network of adopters of a blockchain ledge is probably the most critical measure of its success. Bitcoin has grown significantly over the years in this regard which is why it is valuable. So when people quote network effect as being a big deal, they are correct.
I like that.