Topic: (Serious Question) Is Bitcoin Doomed to be Centralized by China? - page 2. (Read 292 times)
I think it is not wise for the Chinese government to shut down or confiscate the mining devices that exist in China, not because that will affect the mining hash-power of Bitcoin, but because the mining devices and mining workers contribute significantly to the economy The Chinese, although the government does not recognize Bitcoin, the mining industry is very expensive and profitable and is in the interest of the Chinese economy, also the miners who get bitcoin and sell it against the dollar also this will provide the government treasury with more dollars. Also, don't forget the many job opportunities that mining provides for young people, which is good for the government.
Let's rather look at the other side of the coin, when the Chinese miners gets shutdown by their government. We will suddenly see a massive drop in the hashing power and more people with smaller mining rigs would be able to re-enter the mining scene from all over the world and it will be even more decentralized when the difficulty drops. 
We currently have loads of people mining Alt coins, because their mining rigs are too small to compete with the high difficulty and hashing requirements for mining Bitcoin, so if this difficulty drops.. those Alt coin miners will start mining Bitcoin again.
The Chinese government would do the rest of the mining community a huge favor, if they shut their own miners down. Also, some of those miners will quickly relocate to other countries to be able to continue mining or they will sell their ASICs on the black markets.
We currently have loads of people mining Alt coins, because their mining rigs are too small to compete with the high difficulty and hashing requirements for mining Bitcoin, so if this difficulty drops.. those Alt coin miners will start mining Bitcoin again.
The Chinese government would do the rest of the mining community a huge favor, if they shut their own miners down.
Also, some of those miners will quickly relocate to other countries to be able to continue mining or they will sell their ASICs on the black markets. Most of my worries come from them taking over and changing how supply works or imposing new, arbitrary rules like BCH causing the main Bitcoin community to split again.
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I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
No, it's not doomed to be centralized in China.
Scenario 1:
The government will take over and continue to mine most bitcoin. They still cannot keep it to themselves because they have to cover mining operation related expenses. They have to sell/trade it somewhere and they cannot prevent anyone who bought from them to send it anywhere else in the world.
Scenario 2:
The government will take over the mining farms and shut it down. Bitcoin will still thrive since anyone or any group can set up their own equipment and start mining bitcoin unless if they are in countries where it's forbidden by their law to mine.
I guess time will tell, hopefully, we get new security measures in the future for cases like this. I'm still bullish on Bitcoin because its the only asset worthwhile having in this current world situation but I can't run on hopium and people expecting an authoritarian government to play things smart instead of forcing themselves in like they are used to. I think a BCH like scenario is more probable rather than a complete overtake scenario like Steem's and Justin Sun zeroing out people but I guess time will tell. I just hope we are ready to fight back if that's the case, there's no jumping off this ship now :-D
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I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
No, it's not doomed to be centralized in China.
Scenario 1:
The government will take over and continue to mine most bitcoin. They still cannot keep it to themselves because they have to cover mining operation related expenses. They have to sell/trade it somewhere and they cannot prevent anyone who bought from them to send it anywhere else in the world.
Scenario 2:
The government will take over the mining farms and shut it down. Bitcoin will still thrive since anyone or any group can set up their own equipment and start mining bitcoin unless if they are in countries where it's forbidden by their law to mine.
Let's rather look at the other side of the coin, when the Chinese miners gets shutdown by their government. We will suddenly see a massive drop in the hashing power and more people with smaller mining rigs would be able to re-enter the mining scene from all over the world and it will be even more decentralized when the difficulty drops.
We currently have loads of people mining Alt coins, because their mining rigs are too small to compete with the high difficulty and hashing requirements for mining Bitcoin, so if this difficulty drops.. those Alt coin miners will start mining Bitcoin again.
The Chinese government would do the rest of the mining community a huge favor, if they shut their own miners down. Also, some of those miners will quickly relocate to other countries to be able to continue mining or they will sell their ASICs on the black markets.
We currently have loads of people mining Alt coins, because their mining rigs are too small to compete with the high difficulty and hashing requirements for mining Bitcoin, so if this difficulty drops.. those Alt coin miners will start mining Bitcoin again.
The Chinese government would do the rest of the mining community a huge favor, if they shut their own miners down.
Also, some of those miners will quickly relocate to other countries to be able to continue mining or they will sell their ASICs on the black markets.
To be honest, it is not impossible, just by watching all that China had pulled off so far you never know what could be in their plans. I think that will depend on how profitable it is for them, centralized bitcoin by taking control of all the miners farms and just as many other commie countries, launch their own blockchain and milk it from the start. It is the last thing that I would like to see but right now, and how has been this year (I know that won't be that soon) kinda feels now that I don't know what can happen tomorrow.
For me BTC will never be centralized. Yes mostly miners coming from Chinese but you expect they will have some sort of coupdetat due to current situation? Hash rate will decrease in due time I believe its not forever like this.
Dont compared the case of BCH, the owner of that project is beyond a typical crypto enthusiast, and he preferred BCH to be more like a centralized ecosystem. Roger Ver is a wise but coward for implementing a selfish 12% mining tax.
Dont compared the case of BCH, the owner of that project is beyond a typical crypto enthusiast, and he preferred BCH to be more like a centralized ecosystem. Roger Ver is a wise but coward for implementing a selfish 12% mining tax.
Hear me out before you call me paranoid or anything.
I have been looking for multiple sources of information on this, and most seem to agree that at least 40% and up to 65% of the mining hash-power is coming from China.
I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
Maybe it won't happen today, 6.25 BTC per block seems to still make the cut for many miners - but let's say pigs don't fly and BTC is still around 10k for the next halving and the next one as well. What prevents their government from attempting a hostile take over of the farms? (assuming they aren't all loyal to the party already)
After looking at what Justin Sun has done with the Steem Blockchain (I know its dPoS vs PoW) I've been looking for more info in true defense mechanisms to guarantee a decentralized platform but really, most of them are either abandoned or still in the theoretical or alpha phase... Will Bitcoin rise to the occasion when needed or will it slowly become centralized? Maybe they don't do a full hostile take over but enforce a mining block tax like with BCH? Anything goes?
I have been looking for multiple sources of information on this, and most seem to agree that at least 40% and up to 65% of the mining hash-power is coming from China.
I'm not going to argue here if the Chinese government is to be trusted or not - that's something you decide for yourself. What I want to know, is to what extent are they going to allow Bitcoin to remain independent when it becomes harder to turn a profit and how "independent" these mining groups are from the influence of the government.
Maybe it won't happen today, 6.25 BTC per block seems to still make the cut for many miners - but let's say pigs don't fly and BTC is still around 10k for the next halving and the next one as well. What prevents their government from attempting a hostile take over of the farms? (assuming they aren't all loyal to the party already)
After looking at what Justin Sun has done with the Steem Blockchain (I know its dPoS vs PoW) I've been looking for more info in true defense mechanisms to guarantee a decentralized platform but really, most of them are either abandoned or still in the theoretical or alpha phase... Will Bitcoin rise to the occasion when needed or will it slowly become centralized? Maybe they don't do a full hostile take over but enforce a mining block tax like with BCH? Anything goes?
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