How a Bitcoin mining ban in China could impact BTC’s price and security
China’s central planning agency announced plans to ban Bitcoin mining and is currently soliciting comments before it makes its final determination. Mining and cryptocurrency experts have mixed opinions on how the move will impact the security and price of BTC.
China Dominates Cryptocurrency Mining
China is the world’s largest manufacturer of Bitcoin ASICs and specialized cryptocurrency mining hardware. The two largest firms in the industry, Bitmain Technologies and Canaan Inc., both primarily operate out of the country.
Not only that, research suggests that 74 percent of Bitcoin’s network hashrate originates from Chinese-managed pools.
To remain secure, it’s necessary that no single party controls more than 50 percent of Bitcoin’s network’s hashrate. As such, the same research suggests that the Chinese government could influence these mining pools to censor specific users or miners, deanonymize users, weaken consensus, and destabilize the network.
Although the exact percent of the network’s hashrate coming from Bitcoin mining physically taking place in China is unknown, the abundance of cheap hardware and electricity in the country suggests that it leads in this area as well. ..Read more..