Will China Kill Bitcoin?

Will China Kill Bitcoin?


Bitcoin, the number one cryptocurrency by total market capitalization, was invented by Satoshi Nakamoto in 2008, almost at the same time the global financial crisis ignited and it represented an oasis and also an alternative to the current centralized financial system.

Soon after, people like you and me, using normal computers, could mine Bitcoin, if they were lucky enough to find about the first cryptocurrency and figure out how the mining worked. The Bitcoin rocket however launched itself into the atmosphere and got the attention from bigger crowds, more geeks and investors and before you know it, mining pools have been created and that's where centralization might have been born.

After such mining pools have emerged around the world and the mining difficulty increased for the guys like you and me ,that mined Bitcoin like Dogecoin a decade ago, things have changed drastically and the game leveled up drastically for such early adopters and what did they do. They either quit and sold equipment or joined the giants.

The giants that I am referring to however, as you might now, are based in China and it is being discussed that almost 70% of the Bitcoin mining is conducted by Chinese miners nowadays. Considering that Bitcoin miners are no longer spread all over the world "in a decentralized way" the decentralized status of Bitcoin might not be rock solid anymore. If we are to think of centralization or recentralization than we should look at China because that's where most of the Bitcoins are mined.

Now China is in works of releasing its own national cryptocurreny in the form of the digital Yuan and China is also a communist country which means it is as centralized as you can imagine. I live in a former communist country and I know what "extreme centralization" can be like. If China is control of the majority of Bitcoin miners then China kind of controls Bitcoin and can affect its evolution.

Now, the question is: will China kill Bitcoin? I don't know and I am not that much of a tech guy or a future teller to know for sure, but what one can say about the Chinese Government is that it at least learned a lot from Bitcoin in developing their currency by hosting the biggest mining giants in its country. Don't think they banned trading in 2017 but kept mining just out of pity for the miners. They had their interest in blockchain technology and what I am afraid the most about it is for it to be used towards more centralization and the strategy to be adopted by other countries as well.

When I entitled this post Will China Kill Bitcoin? I haven't actually referred to the currency itself but the concept that was created by Satoshi Nakamoto, the one of a peer to peer decentralized financial system that was supposed to replace the current flawed one. For more details on the topic and an in depth analysis of the situation I encourage you to dedicate 10 minutes of your life and watch the following youtube video. It's worth the time spent.

https://www.youtube.com/watch?v=zb18XJmc7CM

Thanks for attention,
Adrian


acesontop
acesontop

I'm an amateur blogger, crypto holder, and a passionate fisherman for as long as I can remember. For more details please ask, it's free. You can find me on steemit.com: https://steemit.com/@acesontop and Hive: https://hive.blog/@acesontop/feed


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