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China’s mining dominance is unlikely to continue

August 9, 2020

China’s dominance in Bitcoin mining cannot prevail as more mining chips are produced and other countries offer cheaper energy sources. said the “cypherpunk”, Jameson Lopp, in one publication Blog.

Lopp noticed that China has a virtual monopoly on Bitcoin mining mainly because most of them The facilities that the mining chips are made from are located in Asia and for their cheap energy.

“In the long term, I expect semiconductor foundries outside of Asia to produce more mining chips and further industrialize countries with even cheaper energy sources and create more competition as miners look for new locations to establish themselves. . China’s mining dominance is unlikely to continue. “

By decentralizing mining outside of pools, individual hashers gain more control. Said Lopp. List two projects that are already being implemented further decentralization towards Bitcoin: Betterhash and Stratum V2.

China’s mining dominance is unlikely to continueChina’s mining dominance is unlikely to continue

However, despite China’s mining dominance, Lopp persists believes the country poses no threat to Bitcoin at all. Even if a state actor wants to take control of all mining activities, There are too many independent observers on the Bitcoin network. The way things are, said Lopp, There are bots that monitor orphaned blocks. Every act of a state or even a single malicious actor is noticed immediately.

“It is hard to imagine that a government actor could have hashing power quickly and quietly enough to carry out a sustained attack lasting more than a few hours. The worst-case scenario, where state actors could seize all physical devices, could result in China just mining empty blocks and orphaning other blocks that contain transactions, essentially stopping all transaction confirmations on the network. Then it would become a game to patiently wait for them to give up or coordinate a code change that would render their hashing machines worthless. “

Other countries are competing for part of the Bitcoin mining market. The Iranian government approved a national mining strategy because of its affordable electricity supply.

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