Bitcoin [BTC] does not have a physical form, making the virtual currency both an efficient and vulnerable asset. The vulnerability and security aspect of Bitcoin has been debated in the past, with many speculating what would happen to it in the face of a nation-state level attack that could possibly jeopardize the network.
Previously this year, rumours surfaced that the Chinese government may decide to launch a 51% attack of Bitcoin, fueling questions of whether the blockchain network will demonstrate resilience or not.
Brandon Quittem, a cryptocurrency consultant and analyst, recently shed light on this matter and claimed that it would be next to impossible to launch a nation-state level attack against the Bitcoin [BTC].
Quittem explained that “Bitcoin was un-regulatable,” as every other country had separate jurisdictional norms. Further, the fact that code is fundamentally a mode of free speech makes the virtual asset free from the control of one individual or a group.
He also suggested that the PoW mechanism protects the Bitcoin ledger with an “energy shield.” He added,
“By anchoring Bitcoin to real economic value [energy], the only way to change the ledger is to “re-do all the work” aka spend the same amount of money in the form of electricity.”
He also said that Game theory would protect Bitcoin from such a large scale global attack, since miners would be incentivized to be good actors on the network. Further, Quittem stated that it was “unlikely” that major countries would come together to launch an attack since nations usually competed with each other.
“If the US bans BTC, China has incentive to adopt. Nations not benefiting from the current USD regime have incentive to adopt BTC.”
Quittem added that privacy improvements in Bitcoin’s network would reduce taxability and would minimize the ability of government to initiate “an attack via tax legislation.”
The Twitter thread caught the community’s attention, with Twitter user, @b_vangogh, commenting,
“I think we are theorizing a bit too much. We must understand that even though crypto might undermine institutions and gov’ts, nothing will work if there is no synergy between all parties. Crypto cannot survive without the necessary framework that the traditional supplies.”
Quittem responded and stated,
“Bitcoin needs to convince super powers that the reward of adopting it outweighs the risk of attacking it.”