Bitcoin Forum

Whatever China proposed, it doesn't seem like they've made their final decision. The officials can always change it back.
More importantly, it doesn't affect the price, does it? Bitcoin grew from $7k something to $8k something, and it's still holding the $8k barrier. So taking this into account, which fall do you mean exactly? What I see is actually even a 2% increase according to coinmarketcap. While it's not a significant change, it's definitely not a fall, so I'm confused.

I am still in a confusing state also as this announcement does not have any impact on the price of Bitcoin. I don't know what you mean by the system will be less secure if Chinese miners stopped. Bitcoin itself is immutable and secure by the way it was built.

Does China dominate Bitcoin mining to make the price drop?
I am not sure if China will drop the price once they have a serious business in Bitcoin mining. They must contribute to keep Bitcoin in good value in order to ensure they have appropriate income from the Bitcoin business. I think they will support the existence of Bitcoin once they dominate Bitcoin mining.

Then you don't have a good understanding of how bitcoin actually works. Miners secure the blockchain through Proof of Work, the more hash power there is, the more secure the Blockchain is.

In other words and assuming the numbers in the OP are correct, we know that the current hash rate is about 110,000,000 (10 million terabyte), for someone to perform a 51% attack on the network they will need at least 110,000,000*0.51 = 56,100,000 Terahash.

The average price for 50th is now worth 1000$, so a total hashrate of 56,100,000 Terahash is worth 56,100,000/50*1000 = $1,122,000,000 , this does not include shipping,infrastructure, installation and so on. so it's safe to assume that you need at least 2,000,000,000 (2 $billion) of mining gears, in fact it would be even more because if you decide to buy that much, mining gears' prices will skyrocket due to the demand you add to the market, but for the sake of simplicity, we will leave it at 2 billion U.S dollars.

Now the average 50th miner consumes 2.5kw, which means you need 1122000*2.5kw = 2805000kw (2805MW) of electricity to run this number of mining ASICs, that is a LOT of power.

Now if 65% of the current hash power (according to the OP) was to leave the blockchain, an attacker will need only 1262 Megawatts and about 0.9 billion U.S dollars to perform the same attack, still costs a lot, but it's much cheaper, therefore a 65% loss in the total hashrate makes bitcoin 65% less secure.

 

China once led the mining industry, now too I believe China is dominant in the market with the largest number of active mining farms. Indicating environmental factors and economic situation prevailing within the country China took decision against crypto currency use and mining. Now if China leaves the mining, there are countries ready to take it granted. So China always tries to stay active in the market even when they're against cryptocurrency usage.

 If we consider these miners, they aren't affiliated with each other most probably, and thus some attack might be unlikely to happen, but is still possible.

Disregarding that, and only focusing on the possible ban, I do think it's a concern, maybe not as of now, but later this year. Some governments already announce their interest in blockchain-powered technologies, and clearly China is planning to release their own. And such release would make it effectively mandatory to be used by the population, and could bring more restrictions or even total ban on anything related on other cryptocurrencies.

No wonder there are some people who are raising the concern that while Bitcoin is decentralized here we have a single county accounting for more than the majority of the mining activities. Now, we don't know what can be in case China will one day decide to expel all mining business from its territory but I know for a fact that if there is still good money that can be made in this industry then new players can always come in from other suitable countries.

This doesn't influence the price, but China's definately coming up with some evil plan. These sudden changes in the law are either well thought out tactics or just sporadic actions, both of which will leave their mark on the rest of the world

what makes you think bitcoin is falling, if you look at the bitcoin data in 2019 the price has increased, even around July prices reached more than $ 12,000 although the current price is $ 8,000 but it is still higher than in January 2019, so I don't agree if you think bitcoin has decreased.

China do control most of the hashpower in bitcoin mining. More than 50% of mining is still done inside China. If bitcoin mining were to be banned, it would have a negative impact on the price. But as of secure, I don't think people in early days ever thought bitcoin mining would be such a large industry. Even if there's no mining in China, it still would be much safer.

95% of what you could read online for the past 7 years that had the keyword "China" in it has been either a big lie or a huge exaggeration. it started mainly with FUD that China controls the price since their exchanges were reporting bloated volumes that were partly fake and partly because of 0% fees on their platforms. then it continued by "China banned bitcoin" and went on for a year or two before it got old. now for the past 2 years the same FUDsters are focusing all their nonsense on hashing power and spread a lot of misinformation regarding that only to manipulate the market.
the good news is that FUD like this gets old fast specially since it is repetition of the same nonsense over and over again.

Either way, I still don't think someone in their right mind would do such thing. Well you have bitcoin's competitors and other entities wanting to claim the top spot for cryptocurrency and are willing to do damages if the opportunity comes knocking, but the moment people see discrepancy, a fork might be released mitigating the damages done by the attacker.

I have never supported China ever but I'm just glad that they are the ones responsible for the majority of the hashing power. The 65% reported by the OP isn't just single entity, and is mainly comprised by several huge ones which do not meddle with each other's businesses and just want to take profit. Knowing the general mindset of a Chinese when it comes to business, they would look to improve their profit margins rather than derail their own source of income in an attempt to disrupt other's progress.

Leave the mining to the Chinese, and the rest of the adoption to happen on other fronts of the world. That's what's happening and that's the setup that's been working since 2013. Other players outside China have given up on their ventures to mine on an industrial scale. How can you continue operating a farm when all the conditions necessary for operations are just against you? Electricity, climate, cost of labor, miners.. the list goes on.

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The market and the community have become immune with these kinds of news already and I don't see people getting affected by Chinese news anymore. We know the numbers, we just don't care about what their government is planning to do now or in the near future because they have always remained unsure about their actions anyway.

Always people think that if china banned or something bad with bitcoin,bitcoin will be bla bla bla.guys Actually there are lots of country in this world,if China Against bitcoin or banned mining others country will support. So don’t think that china can manipulate bitcoin.Yes some bad news effect on bitcoin but only for few days or months.That Does matter the country,but China maybe trying to manipulate bitcoin price but they can't.                 

China is no doubt a key player in crypto market. Just a slight hint from China towards bitcoin result in huge price swing, see what price swing Chinese president brought in bitcoin price last year. As far as mining is concerned its sole leader is China.

the government seems to be in power and seizes the rights of all people, even though it is their right to make bitcoin mining as long as they pay for electricity and permits or other, then why do all countries complicate it like this china, if indeed it will be stopped it will be the same as depriving the rights of miners, I think the people of China and I also think it is impossible for them to stay quiet of course to be able to discuss this well with their government, I still feel unsure too that bitcoin will fall without China

If it is about bitcoin then it has always an effect for the price even it is only said by a news even that was not legit, it can also affect the price.

They cannot easily stop mining because there are some people who fight for that because they pay for mining to mine and some of them do it as business.

The reason why closing the mining facilities in china will impact bitcoin's price is because miners will no longer resist to sell bitcoin at higher price, nor they will not utilize bitcoin after all. Thus, with China having the most hash rate all over the world, it might drive the price of bitcoin down, in addition, without a strong hash rate, the transaction we could create if that happened will also be affected. More and more people will be tired of using bitcoin, though, that is just a speculation, the possibility of that to happen is quite low.

Because mining does not directly affect production beyond the 2016 blockspan production which is two weeks. Whatever the worldwide production is, every two weeks its adjusting itself back into new block every 10 minutes. Bitcoin doesn't really care, its not like it "depends" on China, yes, China can go off for all Bitcoin cares. But most chinese miners would simply move to neighbor countries if not allowed to continue operations.

The price of Bitcoin might be affected a bit, especially from unfounded fears of investors not really knowing Bitcoin, but after seeing the truth their fears slowly fade away.

Do not worry about events like this, unlike the rumors, Bitcoin is not centralized. China may disappear from bitcoin's market and things would go on the same. Yes, even pools and asic manufacturers could close, wouldn't matter. Bitcoin does NOT depend on China or anybody else, not America, no one in particular.

What fall? I don't get it. We are having a blast at the current price right now. Although we are still far from all-time high, at least we are now at $7,000-$8,000 from the lowest of 2019 with $3,800. During those days, china hasn't even involve in Bitcoin mining yet we are increasing in price. It doesn't matter how the hashrates is because bitcoin will adapt and corrects itself in order to be sustainable.

Though I agree that China plays some role in Bitcoin price. Remember when one of their official released a statement about cryptocurrency, Bitcoin pumped to $10,000 then dumped to current price.  

How that could make the system less secure if all the chinese miners stopped mining? Isn't that will further increase the decentralization of hash power? Even if we lost so many hash power today in the next 2006 blocks it will adjust and once mining for people with relatively weak rigs is becoming profitable people will try to run their mining power again. This banning will actually influence nothing to the whole blockchain.

What do they really want?

They banned and unbanned it, I don't know whether they support or do not want cryptocurrency and Bitcoin. The price of Bitcoin cross again the price of $8K, I don't know if this news has anything to do with it but I think it would interest a lot of investor there in China since we all know it holds the most number of miners in the world.

There is no significant effect on prices to date. They just want to dominate crypto before other countries do it.
Whatever is related to the economy and development, surely China always has the initiative to do it the first time. So it's no wonder that almost 50% of the highest hash mining is there.

Actually chain has dominating the Bitcoin mining for the beginning and till now more than 70% and first country manufacturing bitcoin mining equipments. But the chain government has been be giving statements going to ban crypto currencies and mining from past 3 years but still not take any action. I think China government really have some statergy behind banning crypto and mining.

Recently, the Chinese government has repeatedly imposed various restrictions on bitcoin and other cryptocurrencies, however, the market after 2017 almost did not react to this. In addition, many Chinese have already moved to Canada and other countries and are already mining bitcoins there. Therefore, it is unlikely that another ban on mining bitcoin can already significantly affect the cryptocurrency market.

in fact they have only proposed and have not made any move that they will definitely do it. The fact that bitcoin mining for China should be a pleasure. It is bringing a lot of profits to Chinese people and currency benefits. I think the Chinese government is just making a joke and they will not implement that proposal in the future. China's economy is not stable, they will not want to cut another field.

Not really. And there was actually a slight rise. Unless China cracks down on mining, it really can't crash the prices hard. Last time it did implemented a ban (which has since been lifted) it didn't touch the miners, only vaguely saying they want to "phase out" mining.


The unbanning seems to have something to do with their plan to have their own cryptocurrency. Maybe they already had an algorithm in place before the banning to track people's activity so they can find who are using cryptos.

Sorta like Mao pretending he's open for suggestions. People then sent him letters and then he had them all killed.

How could you say that China has dominated in the Bitcoin mining platform? Is it really true? It may be or not but the price is not related to this function anymore, Whatever they have taken any initiative towards Bitcoin mining actually it doesn't bring any impact on the Bitcoin price or anything, First of all, you have to be clear that Bitcoin is a decentralized system so everything is happening on the mass impact, If it really happens then how Does Bitcoin price has been increased so far, Do you know the value of Bitcoin before 2017? then how we are getting the current market value? What's your logic?

Yeah, you are right China is one of the biggest countries in terms of bitcoin mining but that doesn't mean they can have full control and each move they make will affect bitcoins price. I think the pump is just happening in same time as that news is coming out and people who wanna spread fuds will make credit for china for dumping or pumping price after a certain announcement is made.

They have a huge mining market, investors are still here comes from China because they didn’t make any final decision yet. The price movement of bitcoin doesn’t depend on China even if they have a huge number of investors. Well, it looks like they support blockchain but didn’t make any statement about bitcoin. Still confident about their movement in adopting blockchain technology and hopefully cryptocurrency as well.

I think the Chinese government is primarily concerned with the outflow of funds from the country. Chinese citizens are restricted from sending money to their accounts abroad. Therefore all possible clampdown attempts at bitcoin should be viewed in the same perspective. Chinese government is definitely not against bitcoin technology (and as mentioned above, they are actually developing their own blockchain projects), they are just afraid of potential capital outflow

And in fact they did not implement this ban. I think they only created FUD so they could control this market because the Chinese mining plants still work so far and I haven't seen any companies shut down. In the near future China will certainly apply blockchain to the central bank system because they are developing and studying blockchain just like the statements of the Chinese president. So there will be no ban here, and they will certainly control this whole market

I don't think this will have much of an effect. If the hash rate drops much of the transactions will too. How many % of the tx come from china? I think it will be a good thing and even the playing field.
The rest of the world cannot keep up with China as far as mining is concerned. China just has too many benefits compared to the rest of us. I don't remember any ban implemented on bitcoin ever, unless I am much mistaken it is simply FUD.

Saying the same thing on which how would the network would become less secure if huge chunk or percentage of miners tend to stop?
Yes, it can affect but not in terms of security aspects and yes it would really breakout a sort of monopoly yet we know on how much China do totally operates when it comes to mining.It would be more decentralized instead but I don't really buy this kind of news yet Chinas decisions is way too inconsistent where people doesn't seem to believe anymore.

China has a large share in Bitcoin mining. I think this dominance needs to be broken. I think the power gathered in one hand is dangerous. A mining that is scattered all over the world will produce more productive results. Chinese can not ban bitcoin.!

Maybe he's talking about the bottom of 2019 because the announcement about China banning mining was also in 2019 and later there was another announcement by Chinese president about the country continuing blockchain research and deciding not to ban mining.

A country with so much hash power will of course have an impact on the price but a ban would not mean that all Chinese hash power would disappear. They would move to other countries. When there were rumors of a ban they were already securing deals in USA and Europe.

China has been one of the leading roles in crypto and mining for many years. Every single step government takes in this direction affects the market, more or less. Their new year, crypto related decisions by goverment are the proof that how the market is affected from such big country.
When we remember before the unban, I guess they could do it within their own boundaries.

Indeed. China do holds the most huge amount of bitcoin came from mining, that is why in every decisions China government makes it has a huge effect on bitcoin due to it's huge contribution. For now, it is still not finalized if China will ban bitcoin mining in their country.

 I doubt China has anything to do with a "fall" but honestly there hasn't been a fall neither so I doubt thats the case. This is more like whales fighting whales and we are just watching, we want the bull whale to win but bear whales are strong as well with how they can leverage shot futures that well and make insane amount of money too. Weirdly enough people forget that these are billions of dollars worth of investments for china as well, they wouldn't want bitcoin down because that would cause miners to lose money and when miners lose money that means china would lose money as well.

That is not true. Bitcoin price didn't fdrop because of China, that is just pure speculation without any proof. Besides I wouldn't say that price has droped actually, it's more a minor correction. China and Chinese government are given too much influence regarding Bitcoin than in reality actually has.