Bitcoin: A Peer-to-Peer Electronic Cash System (2008) [pdf]
How can we stop Bitcoin?<p>If Bitcoin wins, we&#x27;ll become subservient to an algorithm we have no incentive to change.<p>It will only take a few more 10x increases before people stop smiling at this possibility. The time to plan for subverting Bitcoin is now, not later.<p>I&#x27;m deeply concerned about the potential of Bitcoin to become a financial black hole. I&#x27;ve written about this twice before:<p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15867483" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15867483</a><p><a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15864248" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15864248</a><p>The discussion was interesting, but not useful. We need plans, and we need them now, while there may still be time to do something about it.<p>The central question: If the entire resources of all world governments were brought to bear on the task of destroying Bitcoin, what would be the most effective way to do this?<p>I can&#x27;t think of anything, and no one else has been able to either. Satoshi&#x27;s email is prescient: <a href="http:&#x2F;&#x2F;satoshi.nakamotoinstitute.org&#x2F;emails&#x2F;cryptography&#x2F;4&#x2F;" rel="nofollow">http:&#x2F;&#x2F;satoshi.nakamotoinstitute.org&#x2F;emails&#x2F;cryptography&#x2F;4&#x2F;</a><p>--<p><i>&gt;[Lengthy exposition of vulnerability of a systm to use-of-force
&gt;monopolies ellided.]
&gt;
&gt;You will not find a solution to political problems in cryptography.<p>Yes, but we can win a major battle in the arms race and gain a new territory of 
freedom for several years.<p>Governments are good at cutting off the heads of a centrally controlled 
networks like Napster, but pure P2P networks like Gnutella and Tor seem to be 
holding their own.<p>Satoshi</i><p>--<p>Why should you worry? I&#x27;ve articulated some of the concerns here: <a href="https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15867841" rel="nofollow">https:&#x2F;&#x2F;news.ycombinator.com&#x2F;item?id=15867841</a><p>Ultimately, it may be hopeless to try to solve this. But I can&#x27;t shake the feeling that we&#x27;re staring at a 0.1% chance of life as we know it changing forever. We will lose all monetary controls.<p>Doomsday prophecies have a long and sordid history, but the dinosaurs only had to look up at the sky at the right time to see theirs approaching. And, like the meteor, Bitcoin keeps growing bigger and brighter.<p>Look at <a href="https:&#x2F;&#x2F;i.imgur.com&#x2F;h0giZzF.jpg" rel="nofollow">https:&#x2F;&#x2F;i.imgur.com&#x2F;h0giZzF.jpg</a> We won&#x27;t be able to deal with cases like the 2008 crash. If the basis of the worlds&#x27; wealth becomes crypto, what will we do?<p>Madness of Crowds is worth reading: <a href="https:&#x2F;&#x2F;vantagepointtrading.com&#x2F;wp-content&#x2F;uploads&#x2F;2010&#x2F;05&#x2F;Charles_Mackay-Extraordinary_Popular_Delusions_and_the_Madness_of_Crowds.pdf" rel="nofollow">https:&#x2F;&#x2F;vantagepointtrading.com&#x2F;wp-content&#x2F;uploads&#x2F;2010&#x2F;05&#x2F;C...</a><p><i>It was now that the frenzy of speculating began to seize upon the nation. Law&#x27;s bank had
effected so much good, that any promises for the future which he thought proper to make
were readily believed. The Regent every day conferred new privileges upon the fortunate
projector. The bank obtained the monopoly of the sale of tobacco; the sole right of
refinage of gold and silver, and was finally erected into the Royal Bank of France. Amid
the intoxication of success, both Law and the Regent forgot the maxim so loudly
proclaimed by the former, that a banker deserved death who made issues of paper without
the necessary funds to provide for them. As soon as the bank, from a private, became a
public institution, the Regent caused a fabrication of notes to the amount of one thousand
millions of livres. This was the first departure from sound principles, and one for which
Law is not justly blameable. While the affairs of the bank were under his control, the
issues had never exceeded sixty millions. Whether Law opposed the inordinate increase
is not known, but as it took place as soon as the bank was made a royal establishment, it
is but fair to lay the blame of the change of system upon the Regent.</i>