Is China trying to take over Bitcoin? Why they need Bitcoin Cash and what they are trying to achieve - in my opinion.
First few words about the role of China in Bitcoin mining so you can understand the context.
Currently China controls over 70% of Bitcoin mining. You can find detailed information here: https://www.buybitcoinworldwide.com/mining/china/
China is the undisputed world leader in Bitcoin mining. Chinese mining pools control more than 70% of the Bitcoin network’s collective hashrate. 15% of the hash rate is missing from above chart, but it’s likely that China controls an even greater amount.
Not only does China manufacture most of the world’s mining equipment, but massive mining farms are located there to take advantage of extremely cheap electricity prices.
More informations about why China has centralized Bitcoin mining: https://www.bitcoinmining.com/chinas-dominance-in-bitcoin-mining/
The author concludes:
Having so much mining power incorporated in any single nation uncovered the Bitcoin system to a stressing level of political hazard.
Ought to the Chinese government choose to get serious about Bitcoin, maybe considering it to be a danger to their economy or a contender to their own arranged computerized cash, they could wreak untold destruction in the Bitcoin environment.
This was written on April 4, 2017 by Melvin Draupnir.
Little digression here. If you ask what is China doing best, I would say copying. Don't get me wrong here, I think it's a true virtue! Sometimes they can even improve over the original and organizing low-cost mass production is a art in itself.
So, investing so much money into whole mining factories, using as much electricity as little countries - would China allow to have no control over Bitcoin apart from just the hashpower?
In my opinion: no.
That's why we're seeing the creation of BCC - Bitcoin Cash (China). What first started as an announcement of a small Chinese exchange / mine is getting attention from other mines - of course only those from China, what a coincidence. According to user @ancap47:
BTC.TOP has said that they will divide hash rate on price, so that means 1/6 of their giant mining farm is going to be mining bitcoin cash (source).
Are we gonna see a snow ball effect in the upcoming days? Chinese folks have cash, that we know for sure. They will have no problem with investing tons of CNY into Bitcoin China in order to display its market dominance. I can understand that - Chinese are a proud nation and they rather spend money on their own version of Bitcoin than the worldwide accepted one.
On a side note: China has no democracy. It's ruled by one communist party - they control everything that happens in the country.
China Coin propaganda on steemit.com
The previously mentioned user @ancap47 released lately a very interesting article about Bitcoin Core developers:
https://steemit.com/bitcoin/@ancap47/govt-sponsored-segwit-is-doa-dead-on-arrival-here-s-why
If you don't know - Bitcoin Core is a group of over 100 developers from different countries witch no clear leader. It's rather a open-source community that collectively wants to produce the best and safest Bitcoin code possible. According to @ancap47 they are all paid by banking corporations (AXA), most probably also by Jews and reptalians. That's fine by me, everyone can have his own opinion but one little thing would be pretty useful - sources. Sadly, @ancap47 provided none. In the same time he downvotes, thus deletes, any opposing point of view in the comments and by this removes any discussion. You can see the effects of it here:
Also, he accuse me for being paid by the same banking corporations. Probably that's why I have 100 SP and he has 10 times more. As you all know, Goldman Sachs are really short of money lately. Happily I was able to inform them about the situation and they send me $1 so I can upvote at least one my comment in the discussion via voting bot ;) You can see it here:
Excellent background insights. Bitcoin turning Chinese would be a big wrinkle that wasn't even considered two weeks ago from what I have seen
Upvote and resteemed, this is potentially big
STEEM On!!
Thanks!
This post received a 4.8% upvote from @randowhale thanks to @cardboard! For more information, click here!
I like your article and quoted it in my new article! :)
https://steemit.com/crypto/@sdot/bitcoin-hardfork-btc-btcc-why-exchanges-and-gatekeepers-will-win-and-you-will-loose-always
"coping"
I think you mean copying here. One of those important typos.
I think derogatorily calling it Bitcoin China is not helping your case. Bitcoin Cash is the literal vision of the whitepaper. It's the only real Bitcoin now, technically, although it remains to be seen if that will matter to the market.
Thank you, fixed. If you're talking about the whitepaper, it would be good to quote the larger part of it, without words out of context. Hopefully I'll find time to do this:) On a side note, I wonder if Satoshi predicted the China centralizing Bitcoin mining operations...
I have to admit, I suspect Satoshi did not predict that at all. He may have known nothing about the subsidized electricity options there, which would have been a key piece of information. Otherwise, the only reason to guess China would be population.
Here's a post I wrote highlighting why SegWit is basically anti-Bitcoin, although the market may yet prefer it anyway. However, I did hear Bitcoin Cash had traded up to $900 on an exchange in advance of availability:
https://steemit.com/bitcoin/@lexiconical/seg-wit-is-a-trojan-horse-bitcoin-scaling-debate-explained
Thank you for the link, I'll be happy to read it.
As for the $900 - China has tons of cash that is just looking for investing opportunities. Imagine that your country has 70%+ of hashpower and is releasing its own version of Bitcoin. Wouldn't you switch?
I don't consider BTC Cash "China's version of Bitcoin". It's the original, white paper bitcoin. SegWit BTC is the trojan horse.
Thank you for the comment although I don't agree :) Craig Wright released a whitepaper stating the same and than it turned out he made so many mistakes that it's not worth anything :(
BTC Cash are using the FUD around August 1 to promote an launch their coin. This in an of itself is a red flag (no pun intended). If it was a better option they should let it stand on its own merits and not use this rushed launch window that damages the cryptocurrency community as a whole.
https://steemit.com/bitcoin/@juanplemus/the-bitcoin-cash-powergrab-play
Nice post, it's so hard to know what will happen but it's important to understand what is going on in order to speculate the future. Thanks for all the info mate!
Upvoted
Thanks, hope to release daily updates :)
It's time to da da da duel 🤺
This post has received a 3.88 % upvote from @booster thanks to: @katiepelc.
What affect could this have on BTC price as well the overall crytpo market?
Bad ;) On one side we'll have competition inside Bitcoin but for now it will increase uncertainty - something money doesn't like.
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STOPGreat post! If China in the end takes away 70% of the hashrate from Bitcoin, then maybe regular people can mine Bitcoin again ;) this will of course also mean that the price of Bitcoin will be adversely affected. But I think we can get this hashrate back from new miners.
That was a good read. So you think that BitcoinCash will just be it's own altcoin?
Yep, but the Chinese can not be underestimated.