Kataryna Kovtun August 10, 2020
Opinion: China may lose dominance in bitcoin mining
Casa CTO Jameson Lopp argued for China’s loss of leadership in cryptocurrency mining. These include cheaper electricity and the organization of chip production outside of Asia.
Lopp does not expect rapid change due to China’s current dominance in this area. He cites data from the Cambridge Center for Alternative Finance, according to which the PRC accounts for 65% of the total bitcoin hash rate.
“In the long term, we will see the industrialization of countries with lower electricity tariffs and the emergence of large semiconductor manufacturing sites outside Asia. Increased competition will create incentives for setting up farms outside of China.” — Lopp said.
According to Lopp, China’s current dominance does not pose a threat to the security of the network. There are plenty of independent observers on the blockchain who will immediately identify the attacker.
“It is hard to imagine that some government agencies will be able to organize a continuous attack for several hours. The worst-case scenario with the capture of equipment will lead to the extraction of empty blocks. Thus, the validation of all transactions in the blockchain will be suspended. In this case, you will have to wait for the attackers to surrender. Or coordinate a code change that would render their miners useless,” — suggested Lopp.
The veteran of the cryptocurrency industry highlighted the importance of projects like BetterHash and Stratum V2, which contribute to the decentralization of mining and greater control by individual participants.
Recall that in July, the Iranian authorities allowed the country’s power plants to work with mining centres for bitcoin and other cryptocurrencies, subject to a license and compliance with established tariffs.
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