Since a large number of cryptocurrency mining companies firms are located in China, experts believe that the country holds the capability to destroy Bitcoin if it prefers. The joint research done by three patrons of Florida International University and Princeton University has been revealed by the name “The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin.”
The researchers have referred China as the “most powerful adversary to Bitcoin” for having the largest numbers of miners over the planet and even the home to Bitmain Technologies, which mines roughly half the world’s total Bitcoins. The research paper commences with a preview of China’s role in Bitcoin and its allover growth story. The research reveals the market metrics showing China started dominating the global market after 2013 when transactions executed in Chinese Yuan were considered.
Thereby, China has got a tremendous increase in the count of cryptocurrency mining pools, whereas it surpassed 50 percent of the total network hash power after 2015. Presently, China is undeniably considered the biggest hub of maximum hash power than any other nation. On the other hand, the incentive to attack the industry has also concurrently augmented with the growing value and economic utility of Bitcoin, as reported by Crypto News.
The pdf released based on the study further claims that the Bitcoin mining system has become heavily centralized due to advances in specialized hardware that render commodity hardware obsolete. Over 80 percent of present Bitcoin mining is accomplished by 6 mining pools, whereas 5 of those pools are managed by Chinese individuals or companies.
The second important factor is Internet traffic tampering and surveillance. Great Firewall (GFW) of China, as finely elaborated by AMB Crypto, is highly popular for its on-path surveillance and filtering by utilizing deep packet inspection and active probing of connection endpoints.
The research paper gives an idea saying that the cryptocurrency mining, mainly Bitcoin can only survive such attack if the miners in other places are agreed to pay greater cost in comparison to what China is ready to pay to overcome the attack.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]