• Press Releases
    • Submit a press release
    • Read All
  • Contact us
Advertise
Bitcoinist.com
No Result
View All Result
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
        • Ethereum Casinos
        • Solana Casinos
        • LiteCoin Casinos
        • DogeCoin Casinos
        • Live Crypto Casinos
        • New Casinos
        • Instant Withdrawal Casinos
        • Cash App Casinos
        • No KYC Casinos
        • VPN Casinos
        • Offshore Casinos
          • Crypto Casinos IT
          • Crypto Casinos ES
            • All Guides
          • Crypto Casinos JP
          • Crypto Casinos SG
          • Crypto Casinos MY
          • Crypto Casinos KR
          • No GAMSTOP Casinos in UK
          • No Cruks Casinos NL
      • Crypto Betting
        • No ID sportsbooks
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
        • Aviator Sites
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Bitcoinist.com
No Result
View All Result
Breaking News: FTX Trust Sues Genesis To Recover $1 Billion Allegedly Misappropriated By SBF
China Might Adjust FX Regulation for Cryptos

Chinese Government May Wield Power to Destroy Bitcoin

Erich Grant
by Erich Grant
6 years ago
·
Posted in News, News teaser
Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure

China has played a critical role in the crypto markets for several years now. A new paper written by academics from Princeton University and Florida International University suggests that China’s growing influence over Bitcoin’s key infrastructure has given the Chinese government the ability to heavily shape, or even destroy, Bitcoin.


Bitcoin (BTC) [coin_price] was designed to be impervious to any form of centralized control. Bitcoin’s core infrastructure was built to give all participants in the system a strong set of incentives to maintain the health and stability of the ecosystem. Bitcoin is now over a decade old and has yet to suffer any type of successful hack or attack, which has fed market perceptions that Bitcoin is completely secure. Researchers suggest that this perception is less and less accurate.

The key to understanding this change is the shifting nature of Bitcoin mining. Bitcoin mining originally could be managed using off-the-shelf computers, but the increasing computational power required to mine Bitcoin has led to the creation of increasingly specialized, and expensive, mining equipment. The paper describes how this has led to increasing miner consolidation.

Mining Power Consolidated in China

“Bitcoin mining has become heavily centralized due to advances in specialized hardware that render commodity hardware obsolete. As a result, miners have congregated into mining pools: consortia of miners who work together and share profits. As of June 2018, over 80% of Bitcoin mining is performed by six mining pools and five of those six pools are managed by individuals or organizations located in China. “

If such a concentration of mining power was in a country with an open economy and predictable rule making and policy implementation, there would be less cause for concern. China’s government, however, takes a far more direct role in managing economic activity than its western counterparts and in many ways is more motivated by ideological concerns. China’s government manages internet and information access for its citizens and has powerful tools to compel obedience to state diktats.

China

Potential Attacks

The researches breakdown the potential methods through which the Chinese government could influence Bitcoin into four categories: disrupt competing miners, undermine consensus and destabilize Bitcoin, de-anonymization, and censorship. Potential attacks could spring from ideological or commercial motives. China’s technical ability to carry out these attacks is increased by the governments free hand domestically.

For example, China’s ability to execute a double spend attack is increased by its control over its domestic internet architecture. By manipulating the rates at which information is sent to different mining pools, it becomes possible to successfully execute a double spend attack with less hashing power. For example, a malicious actor could send a transaction to two pools, but dramatically slow the speed at which the second pool is able to operate, allowing the first pool to easily override it and invalidate the second transaction.

China has long been wary about Bitcoin. Many of the use cases for Bitcoin are antithetical to Chinese governments aims. Bitcoin and other cryptocurrencies make it easier for Chinese citizens to evade capital controls, for example. The Chinese government has been heavy handed with crypto markets in the past, and the increasing amount of hash-power located in China means they have greater and greater ability to control Bitcoin.

What’s your take on the conclusion of this research? Let us know in the comments below!


Images courtesy of Bitcoinist archives, Shutterstock.

Editorial Process for bitcoinist is centered on delivering thoroughly researched, accurate, and unbiased content. We uphold strict sourcing standards, and each page undergoes diligent review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of our content for our readers.
ShareTweetShareShare

Sign Up for Our Newsletter!

For updates and exclusive offers enter your email.

I consent to my submitted data being collected and stored.
Erich Grant

Erich Grant

Follow

Full Profile

Related Posts

India

India Cracks Down: Stricter Rules To Combat Rising Digital Payments Fraud

2 days ago
Philippines

Philippines Authorities Move To Put Key Public Records On Blockchain After Mass Protests

3 days ago
Nepal

Jack Dorsey’s Bitchat Becomes Lifeline For Nepalis In Protest Crisis

2 weeks ago
PrimeXBT: Empowering Traders in Crypto Space

PrimeXBT: Empowering Traders in Crypto Space

2 weeks ago
solana-analyse-tendance-leviers-techniques

Solana en route vers les 300 $ : analyse de la tendance des leviers techniques

3 weeks ago
stablecoins

Yuan-Pegged Stablecoins On The Horizon As Beijing Rethinks Policy

1 month ago
Please login to join discussion

Premium Sponsors

Press Releases

  • 上線倒計時:僅剩25天可搶購 Snorter Bot 代幣

    3 days ago
  • 加密錢包掀起發幣熱潮 Best Wallet...

    5 days ago
  • Bitcoin Hyper

    ChatGPT предсказва следващата 1000x...

    6 days ago
  • Snorter надхвърли $4 милиона след...

    1 week ago
  • Experience the Next Chapter of Pickleball with the $PKL Token Presale.

    Experience the Next Chapter of Pickleball with the $PKL...

    1 week ago

Bitcoin news portal providing breaking news, guides, price analysis about decentralized digital money & blockchain technology.

Bitcoin

  • News
  • Price
  • Businesses
  • Acceptance
  • Technology
  • Investment
  • Regulation
  • Reviews

Altcoins

  • News
  • Price
  • Ethereum
  • Ripple
  • Litecoin
  • EOS

Categories

  • Blockchain
  • Security
  • FinTech
  • Technology
  • Trending
  • Breaking News
  • Press Releases
  • How to

About Us

  • Advertise
  • Contact us
  • Editorial Policy
  • Privacy Policy
© 2025 Bitcoinist.com. All Rights Reserved.
  • Bitcoin
    • News
    • Price
    • Businesses
    • Acceptance
    • Technology
    • Investment
    • Regulation
    • Reviews
    • All Bitcoin News
  • Altcoins
    • News
    • Price
    • Ethereum
    • Ripple
    • Litecoin
    • EOS
    • NAGA
    • All Altcoin News
  • Tech
    • Blockchain
    • Security
    • FinTech
    • Price
      • Bitcoin Price
      • Ethereum Price
      • Binance Coin Price
      • Litecoin Price
  • Industry
    • Industry News
    • Press Releases
  • How to
    • Buy gift cards/mobile Top Ups with Cryptos
    • What Is Bitcoin?
    • Best Bitcoin Wallet
    • Bitcoin vs Ethereum
    • Why Use Blockchain Technology?
    • Bitcoin Cash ABC vs. Bitcoin Cash SV
    • How to Buy Cryptocurrency
    • How to do Crypto Gambling
      • Crypto Casinos
      • Crypto Betting
    • Play Crypto Games
      • Crypto Poker
      • Crypto Slots
      • Crypto Blackjack
      • Crypto Crash Gambling
      • Plinko
    • Bitcoin Mining
    • Best Bitcoin Brokers
    • Best Bitcoin Forex Brokers
    • How To Earn Bitcoin
    • What is Facebook Libra?
    • Ripple and XRP: The Complete Guide
  • Events
  • Play Games
Advertise

© 2025 Bitcoinist. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.