I read the following article on ZeroHedge:
Is The People's Bank Of China Manipulating The Bitcoin Price?
In this article it mentions that more than 50% of the hashing power of the BitCoin network is located in China. Because of that if China wanted to control the BitCoin blockchain they could by putting pressure on the BitCoin miners.
Synthesizing this information with the following bullet points:
- China is where the most powerful mining devices are designed and constructed and thus China could hold back supplying hashing equipment a generation or two and legislate cryptocurrency dominance for he who hashes fastest controls the block chain.
- China is a manufacturing power house. This manufacturing capability is the sort of thing that backs a currency.
- The next reserve currency will be a cryptocurrency
What will the outcome of this current set of conditions be? Given the above conditions it is hard to see how the next reserve currency is anything but a Chinese based cryptocurrency unless another method to prevent at will changes to the blockchain database. With BitCoin it will become an industrial foot race. One the USA is no longer able to win and China has the social energy to dominate. Ethereum is reported to have an implementation that inhibits this computational arms race. If this is true then necessarily the heat will shift off of BitCoin and onto Ethereum.
With regards to BitCoin China can through manipulation
- break the network to make it unworkable
- ruin by taking away the desirable features and thereby causing users to flee the network
- manipulate the price for their own benefit
I suspect they will ruin it. That means BitCoin is probably not the final version of what we all know has to be our libertarian decentralized private central banker killing cryptocurrency. That's my opinion today at least.
0 Comments