According to former Ripple CEO Chris Larsen, China’s takeover of Bitcoin (BTC) could be our dystopian future. In a recent article published by The Hill, former Ripple CEO Chris Larsen argues that China has enough power to control Bitcoin:
“At least 65 percent of cryptocurrency mining is concentrated in China, which means that the Chinese government has the majority needed to have control over these protocols and can effectively block or reverse transactions.”
He believes that China is subsidizing “massive amounts of energy” to tightly control the world’s largest blockchain.
How Can China Attack Bitcoin?
While the US and Russia are struggling to build huge mining farms, China’s Sichuan province alone accounts for 54 percent of all hashrate. The centralization of mining raises concerns about China’s ability to attack 51%.
A 2018 research paper published by US academics revealed that China can really make a huge impact on the Bitcoin blockchain through multiple attack vectors. Chinese mining pools can cooperate to censor addresses, anonymize certain users, and perform punitive bifurcations to destabilize the network.
The following expressions were used in the study:
“As the value and economic benefits of bitcoin increased, so did the will to attack it. We chose China for analysis because they are Bitcoin’s most powerful potential enemy and have a variety of salient incentives to attack the system and a range of mature capabilities, both regulatory and technical, to carry out these attacks. ”
“Chinese Money” Narrative Exaggerated
It should be noted that Ripple has aggressively pushed the narrative that Bitcoin is “a cryptocurrency controlled by China” while crying out for clarity of legal regulations in the US. In 2018, Brad Garlinghouse, the current CEO of the XRP affiliate, claimed that countries would not adopt the money controlled by the communist regime:
“How do we know that China will not intervene? How many countries want to use a Chinese-controlled currency? This will not happen. ”
But Jameson Lopp, the Casa CTO, believes it would be “almost impossible” for the Chinese government to take over all the miners:
“There are probably thousands of mining farms scattered throughout China; It takes some effort for the government to take over them all. I think it would be almost impossible for the state to start taking control of the mining facilities before the news seeps into the rest of the world. “