China Can Destroy Bitcoin Network-A new research report entitled “The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin” provides very detailed and important information about China’s increasing command on the Bitcoin network and the risks affiliated with it.
The researchers pointed out various potential threats to Bitcoin’s integrity from China by calling it: “the most powerful potential adversary to Bitcoin.” The study also highlights genuine reasons why China may lead an attack on the system.
The study discloses that at present time, 80% of Bitcoin mining is performed by six mining pools. Five among these are located in China. One of the security features of Bitcoin is that no individual or firm can control a hash rate of 50% or more, however, this security measure is now a valid concern. With over 51% control of the hash system, miners can alter transactions on an immutable ledger.
In addition, the paper highlights how China’s political, economic, and social policies can have control over domestic activity and their technology policy can have preferential treatment over its domestic internet infrastructure. According to the author’s of the research document, China may potentially have motives to threaten Bitcoin’s network through its country’s regulatory and technical measures.
China Can Destroy Bitcoin, an Ideological Rival
China Can Destroy Bitcoin Network-Bitcoin is the “ideological opposition” to China’s communist policy, which is the reason for China to destroy it. The research paper states:“Virtually any violation of Bitcoin’s security suffices to achieve this goal as long as it is highly visible,”.
The study proclaims that Chinese mining pools are capable of executing 19 different types of attacks. One such attack is a Goldfinger attack which can destroy Bitcoin:
“The most likely scenario is a death spiral in which China can credibly threaten a Goldfinger attack and rational miners will be scared off, thus destroying Bitcoin,”
China can use influence on Bitcoin to destroy its enemy countries
China Can Destroy Bitcoin Network-The report claims and alerts us that China can indirectly attack the economy of its enemy countries by attacking Bitcoin, especially as many foreign countries are beginning to consider cryptocurrencies like Bitcoin, Ether, and others as their Fiat currency due to the lack of financial stability and infrastructure in their country:
“To exert influence in a foreign country where Bitcoin is in use, China may aim to weaken or even totally destroy Bitcoin. This could be done by targeting specific users or miners for attack or by generally weakening consensus to increase volatility to a breaking point,”