Experts: China May Destroy BTC

The idea of ​​creating bitcoin was to avoid any centralization, and its infrastructure is designed to provide motivation to market players to support a stable ecosystem. But in the course of the study, experts from the University of Priston and Florida revealed that at present such a view of the father of cryptocurrencies is far from reality, mainly due to the consolidation of mining:

“Now BTC mining has reached a strong level of centralization, and all thanks to the parameters that the hardware has. As a result, the miners gathered in mining pools, working together and dividing the profits equally. By the middle of this summer, more than 80% of Bitcoin mining was implemented by 6 mining pools, 5 of which are located in China, respectively. “

If this consolidation proceeded in a country with a more predictable policy, there might be fewer questions, but China’s policy on Internet censorship and other factors allow experts to say about the significant risk of potential attacks, both for ideological and commercial reasons.

What the Chinese authorities can take advantage of

The study also mentioned possible methods that the Chinese government can use to manipulate the network:

1. Exterminating competing miners;
2. Consensus compromise and bitcoin destabilization;
3. Deanonymization;
4. Censorship.

For example, experts believe that, by technical standards, China is able to make a double-spend attack by controlling the Internet infrastructure inside the country: by controlling the data transfer rate of various mining pools, hackers can send data to two pools, significantly slowing the transfer speed for one of them.

According to BIS (Swiss Bank), the world is not yet ready to accept cryptoassets, and until international financial institutions stop providing services, digital assets are likely not to become popular. BIS also believes that Bitcoin can lead to failure functioning of the Internet.

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