Study Claims 74% of BTC Mining Originates in China
The current most popular digital asset in the crypto scene, Bitcoin, could potentially be under the influence of Asian economy according to recent studies conducted by Princeton and Florida Intl University. Research conducted by these two institutions suggest that mining operations in China are so large that they have become a defining factor over the crypto favorite Bitcoin. Researchers believe that this could potentially foster manipulations within the BTC network.
China Becomes Home of Bitcoin by Majority
China has become home to the largest volume of crypto miners worldwide and has come to be known as Bitcoin’s most powerful competitor. In addition, China hosts the major crypto mining company, Bitman, which has so far successfully mined half the quantity of existing BTC available.
The BTC network significantly depends on mining activity which involves computer processing, hash rate identification, and the discovery of new blocks added to the network in order to retrieve BTC. The research discovered that 74% of the aforementioned computing power originates in China. Thus, the nation controls 51% of hash rates pertaining to the BTC network, which suggests a fear of 51% threat of attack. The BTC ecosystem has collectively and increasingly become worrisome over the risks associated with threats caused by scenarios in which majority miners develop the ability to alter transactions on the network’s ledger in order to facilitate economic gains.
Bitcoin At Risk of Manipulation
The report claims that China’s government has a close watch over all BTC-related transactions and since the region possesses the majority of miners in the world, the worry exists that this could lead to a disruption of the overall network. The study also suggests that the Chinese government has allegedly performed calculated tactics to reduce the overall network speed. The study references the Chinese Great Firewall and other tools utilized to alter and track web traffic entering the nation as an attempt to control the BTC network.
Researchers also investigated various methods China’s advantage could weaken the digital asset which includes a list of regulatory policies. The study concluded that China’s capability to utilize BTC could be considered a tool to control or weaken countries that economically benefit from the popular digital asset over their own native currencies. The study participants mentioned that if the desire to control or have influential power over nations that become reliant on BTC existed, China would likely attempt to damper or possibly destroy the network.