China controls more than 65% of the computer power to mine Bitcoin and has control over more than half of the world’s Bitcoin Mining Operations where there is no place of any other country is a matter of think. And reportedly, 60% of the Bitcoin miners have a real concern about that Chinese majority.
They worrying matter is that China’s belonging to more than half of mining operations could result in disruption to the system but the question is how a decentralized currency can be controlled. To understand it, one should have knowledge over some fundamental attributes of Bitcoin ecosystem.
Establishment of Bitcoin on a Decentralized System
Satoshi Nakamoto wanted to build such a currency which could be democratically exchanged not being subjected to any third party. The reflection of his vision resulted in BItcoin over which no one is there to govern. So it proves that Bitcoin is a decentralized network.
But the fact that this currency system is also prone to 51% attack or majority attack as this attack can disrupt the entire system through allowing the attacker to alter transactions and some other ways. So, it is the concerning issue that China runs 65% of the global hashing power.
Production costs for all goods are lower in China being an international trade. Miners also seek for that opportunity to set their rigs in places where energy and labor costs are cheap. Many mining farms depend on coal to fuel their mining and coal is cheaper than other fuels such as gas and oil. So, china created a large opportunity to miners.
Another corcerning issue is that China government has control over the country’s 65% mining industries. As a result, if the government wants, it can take over a majority of the computing power and thus this decentralized system can turn into a centralized system.
How would be China’s future in mining?
New players are in a large extent setting up shops in European Nordic States with cheaper energy options along with a lack of government oversight. As a result, this freedom can mesmerize investors looking for a more sustainable opportunity. China actually banned Bitcoin along with all cryptocurrency for years but suddenly the government gave permission to develop blockchain technology and miners to continue their operations at the end of 2019. The government still hasn’t lifted its ban up on cryptocurrency. So, the future is dismal. The Bitcoin community needs to be aware of Chain’s large number of miners, mining pools and companies. So, it is yet to be seen that how far the Chinese mining will go.