Bitcoin or Gold?
[responsivevoice_button voice=”UK English Female” buttontext=”Listen to Article”]
JANUARY 7, 2020 / 12:42 UTC
LONDON (Fintech Zoom) – Bitcoin Mining – As most of you might know already, China is home to over 75% of the mining pools in the Bitcoin network. This is same country that has been intensively working towards the banning of such process.
So, can you imagine what will happen if the Chinese government succeed and actually bans the Bitcoin mining?
First, the event is expected to shake-up the industry since the Bitcoin network will temporarily lose over 75% of it’s mining power or hash rate that comes from China.
In other words, the mining rate of Bitcoins will collapse, and the lack of supply is likely to cause the price to surge. Another consequence would be fewer transactions being executed on the network.
However, some people, like the Princeton researcher, Ben Kaiser, say that if China ends up banning Bitcoin mining, it could be a good thing in the long run. Why is that?
After studying the influence of Chinese miners over the network, Kaiser has come to the conclusion that closing those large facilities could help smaller miners compete all over the world – even in China, operating under the radar.
That would be a huge pro for Bitcoin, considering that the cryptocurrency was designed to be decentralized. However, with 75% of it’s mining power as well as the mining equipment production available in the industry residing in one single country, the opposite is happening.
Read more information:
Best in Market:
- ICO listing sites ICO Rating Agencies (2019) | Cryptocurrency ICO List | ICO Calendar
- Cryptocurrency Exchanges (2019)
- Top Fintech Companies
- List of Top ICO Marketing Agencies | Best Crypto & Blockchain Marketing Service Providers
Reed more information: