It’s commonly known that cryptocurrency mining farms located in China have a stronghold over the Bitcoin ecosystem. However, a scathing new report suggests that China’s increasing influence over the leading cryptocurrency by market cap may be putting the Bitcoin network at severe risk.
China’s Control Over the King of Crypto
A new report entitled The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin from a group of researchers hailing from Princeton University and Florida International University, takes a terrifying deep dive into China’s increasing control over the Bitcoin network and the risks associated with the country’s firm grasp.
The researchers “singled out” China, calling it the “most powerful potential adversary to Bitcoin.” It also warned of a “variety of salient motives for attacking the system and a number of mature capabilities” that China uniquely possesses, which are a threat to Bitcoin’s integrity and future as a world currency.
The paper points out how “heavily centralized” Bitcoin mining has become, with “over 80 percent of Bitcoin mining” being performed by a total of six mining pools – five of which have base operations associated with China. Combined, the Chinese mining pools control 74% of Bitcoin’s hashpower.