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When 65% of the currency is mined in China, that's not exactly decentralized. Folks long BTC are exposed to the risk that the CCP will weaponize their mining sh
by politician 6y ago
When 65% of the currency is mined in China, that's not exactly decentralized. Folks long BTC are exposed to the risk that the CCP will weaponize their mining share into a 51% attack.
[1] https://cbeci.org/mining_map https://cbeci.org/mining_map
- etrabroline 6y agoWhy not the US? Or Russia? It would be easy for a large state to dwarf the hash rate of the network if they wanted to sabotage it.
- vmception 6y agotheoretically less secure networks and the nomenclature around "validators" refers to Proof of Stake networks and Delegated Proof of Stake networks, of which bitcoin is neither. so this discussion isn't about Bitcoin but I can understand how that might not have been clear. I'm not saying these points don't also apply to bitcoin in some degree, this thread just wasn't about it.
- politician 6y agoFair point.
- zhdc1 6y agoI doubt this would happen, but I could very well see the CCP cracking down on coin mining for host of different reasons.
- fuzzybear3965 6y agoJust because a large amount of mining is done in one physical location doesn't mean it's not decentralized. All mining is done on earth. Does that mean it's centralized? I think the implication is that the Chinese government has influence over the currency. If that's true (and I don't think it is, or that they even have any interest, given the rise of crypto capitalism in HK and mainland China) then they could at most attack the network once, completely destroying its value. Sounds like a lot of wasted energy when people can 1) fork BTC to circumvent this 51% attack, and/or 2) opt for another currency to replace BTC as "digital gold".