Is Bitcoin Fall Because of China Or Actually They Dominates Bitcoin Mining

[bukhara85]

The Government Of China Announced A Proposals At 8th April 2019 Which May Prohibit Mining Bitcoin.
After Six Month Later China's National Development And Reform Commission Essentially Unbanned Mining Bitcoin All Over The China.

Last December I Read The Coinshares Research "December 2019 Update"
The Research Stated That The Highest Hash Power Resides In China. Nearly 65 Percent Of The Total Hashrate Originates From China Which Is The Highest In At Least Two Years.
Its Acting Like They Are Able To Influence The Network Of Cryptocurrency Any Time, If Chinese Miners Stopped Mimin Hashpower Will Be Significantly Reduced And The System Will Become Less Secure.

Attatchment: https://coinsharesgroup.com/assets/resources/Research/bitcoin-mining-network-december-2019.pdf

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[kryptqnick]

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.

[Zemomtum]

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.

[Rengga Jati]

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.

[mikeywith]

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.

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.

 

[Duzter]

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.

[blckhawk]

 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.

[CryptoBry]

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.

[gerica0613]

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

[MURONDI]

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.

[tsaroz]

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.

[pooya87]

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.

[dothebeats]

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.

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.

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.

[iamaruf]

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.                 

[msarro]

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.

[samuraijin]

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

[GideonGono]

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.

[Polar91]

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.

[Artemis3]

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.

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.

[meanwords]

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.