In Order to Mine Profitably In The Future, You Must Prepare To Suffer Losses in the Present
Because of the higher returns on capital to mining on a large scale, the market has naturally evolved towards fewer large mining firms. While in the current phase in which cryptocurrency transactions take little from state tax revenue, nobody cares so centralization continues, but if demand for cryptocurrency reaches a point where there is significant loss in any state’s ability to tax, it is likely these easily targetable mining firms can be co-erced into pools where the state can achieve majority hashrate.
Because the state can subsidize mining operations in order to achieve and maintain majority hashrate, it is up to individuals that can effectively mine discreetly or beyond the jurisdiction of the state attempting to censor to overpower the state’s subsidized mining operation. Miners will not do this without an incentive. Since the state can operate perpetually at a loss as it has the ability to tax, the only way in which the state can be defeated is if demand to transact is high enough such that fees to transact lead to an increase in hashpower by profit seeking black market miners.
If individuals are not willing to resist, face the consequences of operating illegally, and pay fees above what the state can tax, bitcoin will be defeated. It is during this war phase where miners who can forsee this conflict have the most opportunity for profit.
The industry as it is today is not at all prepared for this type of attack, and therefore the opportunity for miners who can forsee this are enormous.