It's not the wallets or the BTC, it's the network.
The fact that one province getting flooded in China brought down 52% of the network 2 days ago makes it not much of a debate anymore. It also shows BTC to be far from decentralized as people think.
What happens if Chinese miners decide to fork the network or maybe add 10 million more coins to circulation?
When Peter Thiel is saying BTC should be considered a Chinese financial "weapon" it's just something to consider for the longevity of your investment.
If this narrative continues, western govs may come down hard on BTC with regulation. Once BTC gets flipped by literally any other coin and loses #1 spot, it loses it's first mover "digital gold" advantage and due to slow speed and high fees it will become a low-ranked alt coin pretty quickly.
The fact that one province getting flooded in China brought down 52% of the network 2 days ago makes it not much of a debate anymore.
This phenomena is not very uncommon, Chinese miners tend to switch between Bitcoin and Bitcoin Cash all the time depending on which is the most profitable to mine at a specific time.
With 51% of the network controlled by one single entity it's possible to do some fuckery within the current block being mined, tho with a mining reward of $2.5M/hour, China is probably more interested in the mining profit than fucking up the chain completely which obviously would render all their expensive specially made hardware completely worthless overnight.
It also shows BTC to be far from decentralized as people think.
52% in one large Chinese region that happens to have plenty of cheap and renewable electricity. The rest is still spread across the entire world. American and European miners with a few rigs in their garage/basement won't just disappear because China's percentage grows. So it's still decentralized. Even if coins like Ethereum or Monero is better in the west.
What happens if Chinese miners decide to fork the network or maybe add 10 million more coins to circulation?
That would create a fork, just like when Bitcoin cash was created from a simple rule change. It's not the same coin even if they share a similar name and cause confusion for beginners. It wouldn't make sense if people could change the rules to whatever they want any time they want, now would it?
If this narrative continues, western govs may come down hard on BTC with regulation. Once BTC gets flipped by literally any other coin and loses #1 spot, it loses it's first mover "digital gold" advantage and due to slow speed and high fees it will become a low-ranked alt coin pretty quickly.
It's likely that other coins eventually will take over as #1, Ethereum has been close a few times. Problem is that people don't know about them yet, or that they are in fact better in terms of scaling, speed, fees, functionality, energy usage etc.
The narrative on BTC is shifting rapidly.
"takes too much energy"
"mined in China"
"money laundering"
"HSBC won't do biz with BTC investors"
"can be hacked or controlled by CCP"
"China coin"
2 days ago China province flooded and took down 52% of BTC network capacity.
The writing is on the wall for BTC investors. For the record I'm neither pro nor anti BTC so don't shoot the messenger.
$50 Billion of Bitcoin/Crypto was MOVED out of 'Chinese Based' digital wallets last year alone...that's alot of 'hard currency' they DON'T control...
They want to be able to steal their wallets...
It's not the wallets or the BTC, it's the network.
The fact that one province getting flooded in China brought down 52% of the network 2 days ago makes it not much of a debate anymore. It also shows BTC to be far from decentralized as people think.
What happens if Chinese miners decide to fork the network or maybe add 10 million more coins to circulation?
When Peter Thiel is saying BTC should be considered a Chinese financial "weapon" it's just something to consider for the longevity of your investment.
If this narrative continues, western govs may come down hard on BTC with regulation. Once BTC gets flipped by literally any other coin and loses #1 spot, it loses it's first mover "digital gold" advantage and due to slow speed and high fees it will become a low-ranked alt coin pretty quickly.
Hedge wisely!
This phenomena is not very uncommon, Chinese miners tend to switch between Bitcoin and Bitcoin Cash all the time depending on which is the most profitable to mine at a specific time.
With 51% of the network controlled by one single entity it's possible to do some fuckery within the current block being mined, tho with a mining reward of $2.5M/hour, China is probably more interested in the mining profit than fucking up the chain completely which obviously would render all their expensive specially made hardware completely worthless overnight.
52% in one large Chinese region that happens to have plenty of cheap and renewable electricity. The rest is still spread across the entire world. American and European miners with a few rigs in their garage/basement won't just disappear because China's percentage grows. So it's still decentralized. Even if coins like Ethereum or Monero is better in the west.
That would create a fork, just like when Bitcoin cash was created from a simple rule change. It's not the same coin even if they share a similar name and cause confusion for beginners. It wouldn't make sense if people could change the rules to whatever they want any time they want, now would it?
It's likely that other coins eventually will take over as #1, Ethereum has been close a few times. Problem is that people don't know about them yet, or that they are in fact better in terms of scaling, speed, fees, functionality, energy usage etc.
Speaking of Bitcoin Cash that's a good one to make gains on in the coming months I think even if it's not the best tech out there today
NO SHIT!!!! ITS ALWAYS BEEN A TOOL OF CHINA TO SUBVERT THE USD’s RESERVE CURRENCY STATUS.