China Could Attack Bitcoin to Reduce the Power of Global Economies: Report
In a newly published report authored by Ben Kaiser, Mireya Jurado and Alex Ledger of Princeton University and Florida International University have stated China has more than enough reasons to attack Bitcoin’s network.
Authors have argued the main thing China will want to do is to have power in the global economy and they will be not afraid to attack Bitcoin network in the future. The paper called ‘The Looming Threat of China: An Analysis of Chinese Influence on Bitcoin’ stated that China looking to drop the economic power of the countries that Bitcoin will be actively used.
Authors said Bitcoin is on its way to become a global currency as the leader cryptocurrency also being used in the top financial situations more and more each day. They said if China manages to attack Bitcoin’s network properly, then this will impact very bad to the some of the world’s economies.
Apart from that, authors argued China might have other reasons to attack Bitcoin network, with one of them the ideological difference between China government and Bitcoin. They stated:
“Bitcoin stands in ideological opposition to China’s centralized governing philosophy, so they may be motivated to weaken or destroy it to make an ideological statement.”
The authors also added even the slightest of security branch of Bitcoin network will count as an achievement for China.
The second reason for them is law enforcement. As we already know, cryptocurrencies are heavily criticized with the way they were used such as money laundering and many other illicit activities. Authors said that the Chinese government might want to jeopardize the anonymity involved in the Bitcoin system.
Authors also stated China has the power to attack Bitcoin in theory because they have the most hash rate than any other country, thanks to the influence of Bitmain.
The final goal, according to them China’s drive for more power over Bitcoin. They finished their reports with that statement:
“By disrupting non-Chinese mining pools, especially those with significant hash power, China could further increase the proportion of hash power they can control and thus exert more influence over Bitcoin.”