in

[Discussion] Is it scary that China controls 45% of all BTC hash rate?

In light of the news that the blackout in China cause the overall hash rate dropped 45%, and it was just one Province in China which means the overall hash rate by Chinese mining farm and pool is well over 50%.

https://news.bitcoin.com/bitcoin-hashrate-drops-xinjiang-blackouts-blamed-btc-price-slides/

I can’t help but feel a bit uneasy with this. I always knew China has a centralized hashing monopoly but didn’t really click with me until the blackout.

Utlimately BTC is China.

And China is the CCP government.

As much as we think crypto is decentralized but ultimately the chinese government controls the very nature of how the blockchain is being secure is a bit frightening.

Thoughts?



View Reddit by rrdonooView Source

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *

GIPHY App Key not set. Please check settings

47 Comments

  1. This is indeed very problematic for Bitcoin. I believe the nature of Bitcoin needs to change or crypto needs to spread out more in the alts, so that the whole market isn’t overly reliant on BTC.

  2. Once mining at home finished, it was bound to end up being concentrated on whoever owns the most mining rigs. It’s a shame, as we should all be hodling miners, which would give it the total reliability, but it’s not possible.It’s fine though, Russia, Canada and the US are all gearing up for some big farms. Norway is on it as well. These sort of things happening are good, it hardens the system.

  3. Yes it is. But we knew that all along. That’s why the western world needs to step up their game and get some large mining farms. I’m personally hoping ETH takes over one day.

  4. I wouldnt say Bitcoin is China, but clearly the Bitcoin protocol isnt capable of handling major events gracefully, average blocktime is over 15 minutes and in some cases nearly an hour. Mempool is full to bursting and transactions are significantly delayed.

    A simple protocol change could fix such problems, but vested mining interests dont want it changed so it doesnt happen. PoW is a broken system that sets users and miners into different interest groups.

  5. If we can get these control freaks out of our government, well have American developers creating better, safer, and more business friendly cryptocurrency. Right now any development will be hurt by massive taxes, and potential draconian regulations. I hope this example is one for the younger that believe government is good for finace. It is not. You have a trial attorney that is now a senator who all of the sudden will be an expert on cryptocurrency. And they all look for kickbacks. Government just like the mob. The more the politician likes government means they won’t like cryptocurrency. Oh and last but not least politicians work for special interests ( banks) to become wealthy.

  6. There’s a lot to unpack here. China has a lot of hydro electricity which makes mining very profitable. Mining is mobile, people can move their rigs around in search of cheaper energy. Mining pools do not equal the country they’re in. China has tried to ban Bitcoin multiple times, did that turn off all of the pools in china? No. So it’s safe to assume that Miners in china do not equal China.

    A 51% attack takes a lot more time and resources than just getting 51% of the hash rate and re-writing history. They would then have to maintain 51% and rewrite all of bitcoins history and in turn corrupt the worth of Bitcoin itself. So in theory, they would only do it to destroy Bitcoin, not for monetary reasons. Then they would need to out perform all other minors that are creating valid blocks. Miners can come and go from pools in an instant. So the miners that are doing this for monetary reasons would leave the pool and “China” would have wasted billions of dollars.

    So no, I wouldn’t worry about it. History has shown that Miners will voluntarily leave pools when hash rate gets too close to 51%.

  7. Not optimal of course and it can definitely cause some minor issues in the short term if the Chinese government has a change of heart regarding BTC and crypto (highly doubt it though) but in long term it would be fine. A better distribution and adoption by other countries would be ideal really.

  8. Yes, but without it, we would not have the current BTC prices constantly pushing ATHs, or even remotely reasonable transaction times. We gotta take what we can get I guess.

  9. These discussions are getting out of hand. If it’s decentralised why wouldn’t China have a significant part? They have a significant population. Isn’t the mechanism of Blockchains supposed to ensure no foul play? If so, these comments are just racism

  10. Btc is the strongest decentralized network in this world (maybe even universe?). It could drop by 99%, it doesn’t matter, it will always come back to normal state. Just don’t move any BTC while something like that happens.

  11. I once read somewhere that if one entity controls more than 50% of the Bitcoin hashrate, they can effectively manipulate it in whatever way they want. Is this actually true? Because if it is, China has probably been doing it for a long time.

  12. Scary? More like expected. China is governed by a group of people scared to death of losing control over their populace. They saw that Bitcoin for what it could be and fostered an ecosystem of cryptocurrency policies favorable to them gaining control of “it”, before “it” gets controlled by someone else.

  13. Its not just Crypto. Lots of business are dependent on China. Cheap workforce and in this case cheap electricity. It’s just the way it is. That’s ok. They know they can’t innovate anything, creativity and innovation is 0 within the Chinese system, cheap is all they have. They can move the prices but they can’t stop innovation from other countries, they depend on it. If mining stops in China miners will just show up in the next less expensive country. Supply and demand economics 101.

  14. lol, shit you never hear:

    Ultimately, USD is USA

    And USA is the American government

    I wonder what most people think the common international currency of USD is backed by. Do they think it’s gold? I bet few realize that the USD is backed only by the size of the American military.

  15. China has its hands deep down to everything. Just looking at the pandemic there’s so many things which are being imported from china and it created so much problem. Also you can never know what the CCP government is deciding.

Loading…

0

What do you think?

InsideBitcoins.com

Ethereum Price Prediction: ETH/USD Extends Sharply in a Downward Correctional Move Averaging the Resistance Level of $2,600

Li Bo, deputy governor of the Central Bank of China, said that crypto assets such as Bitcoin should be used as investment tools or alternative investments. This is the first time that the Chinese government has recognized the asset value of cryptocurrencies.