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Former Ripple CEO Chris Larsen: China can destroy Bitcoin

Recently, former Ripple CEO Chris Larsen argues that China has enough power to control Bitcoin:

“At least 65% of cryptocurrency mining is concentrated in China, which means the Chinese government has a great deal of control over those protocols and can effectively block or reverse transactions.”

He believes China is subsidizing “large amounts of energy” to maintain tight control over the world’s largest blockchain.

China attack Bitcoin 1

The ex-Ripple CEO Chris Larsen

How China can attack Bitcoin

While the US and Russia are scrambling to build huge mining farms, China’s Sichuan province alone accounts for 54% of the total hashrate.

Source: Coinshares

Centralization of mining has led to concerns about China’s ability to carry out a 51% attack.

A 2018 research paper published by US scholars found that China can actually exert a major influence on the Bitcoin blockchain through multiple attack vectors.

Chinese mining groups can cooperate in carrying out punitive spoofing to censor addresses, anonymize specific users, and destabilize the network.

“As Bitcoin’s economic value and utility increases, there is more incentive to attack it. We point to China for analysis because they are the most powerful potential adversary to Bitcoin, and we find that they have many outstanding incentives to attack the system and some maturity, both technical and regulatory, to carry out those attacks.”

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