Study: China can at any time to destroy bitcoin
China plays a key role in the cryptocurrency ecosystem for several years. According to a new study by academics from Princeton University and Florida international University under the title “the Looming threat of China: analysis of the impact on bitcoin”, the leadership of China may be enough resources to make a significant impact on the largest cryptocurrency, or even destroy it.
The authors of the study called China “the most powerful of possible opponents of bitcoin” and warned that the country has “a number of distinct motives to attacking the system, as well as many compelling opportunities for that.”
They also note that mining bitcoin was “highly centralized” over 80% of the computing capacity of the network accounted for only six mining-pools, five of which related to China. The total hash rate mining-pools China is 74% of all resources in the network of bitcoin.
The researchers also draw attention to China’s policy, in particular remind of the existence of the “Great Chinese firewall” technology which may allow authorities to censor the distribution of blocks produced by local miners.
In addition, the Chinese miners can work together to produce empty blocks, thereby significantly slowing the operation of the network of bitcoin. But this is not the worst. The authors of the research identified 19 types of attacks, which is currently able to carry out Chinese miners to including to destroy bitcoin.
But why would China? Academics conclude that bitcoin is an “ideological opposite” of the ongoing Communist party of China policy, so they can try to “weaken or destroy” the currency just to Express themselves.
“Almost any intervention in the security of bitcoin would allow them to achieve this goal, if it will be widely publicized,” they write.
As another probable motive for the destruction of bitcoin they call the interest of some countries in bitcoin as a reserve asset, as they may not be well-developed payment infrastructure or private FIATA currency can be weakened. In this case, China can exercise an indirect attack on their economies, destabilizirovat network of bitcoin.
“To influence a foreign state, where use bitcoin, China could try to weaken or even completely destroy bitcoin. They can attack individual users, or miners, or to weaken the General consensus that the volatility has reached critical levels,” analysts conclude.