Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Lazarus who wrote (167198)	1/16/2021 5:09:04 PM
From: TobagoJack	2 Recommendations Recommended By dvdw© marcher Read Replies (1) \| Respond to of 217818

(1) the legal liability of owning BTC can certainly send the value to below zero, and depending on the circumstances, substantially below zero (2) as matters stand, China domain accounts for majority of bitgold mining / processing and if TikTok silly-dance video app is a national security threat, I am sure that an origin-unknown bitcode weaved into USA financial-scape would qualify as something at least a level higher than national security threat, especially as bitcode governance resides in miners in aggregate accounting for >50% of total production (I may have gotten this part wrong, am trying to verify), and China accounts for ~65% Message 33144061 (re CCP) Message 33143976 (re 65%) (3) should the outgoing USA administration or the incoming officialdom wish to shake up the universe as we know it, label bitgold as existential-threat-to-the-dollar, guessing more easily justified than the TikTok labelling, and anyone continuing to own bitgold can easily be at substantial negative value the problem is that whereas gold one can disown gold by throwing it away unclear how one disowns bitgold as throwing it away still leaves the pass-phrase in one's head (4) Perhaps the same issue exist for Etherium - I do not know (5) We know sanctioned large Russian companies mine BTC (6) The Iranians apparently also mine BTC (7) Given (5) and (6), folks suspect N Koreans deep in the mines (8) The reason China domain accounts for much of the mining is simply that China had activated hydro projects that in aggregate are larger en.wikipedia.org than the famous / infamous Three Gorges Dam en.wikipedia.org and electricity is cheap to dirt-cheap news.bitcoin.com <<1 cent per kWh>> and more coming because Team India decided to engage as a part of Quad to contain Team China, work to hive off Tibet, and so forcing China to weaponise water businessworld.in The issue could be that what sort of companies get first dibs on inexpensive power? My guess, connected companies. What qualifies a company as connected? In the USA, would a Pentagon or intelligence service associated company be considered 'connected'? (9) In any case, it might well be the case that BTC mining is very much the same sort of activities as the rumoured connections between USA authorities and drug lords in certain parts of the world, except BTC is being weaved into the DNA of monetary-financial infrastructure. Each dollar of BTC rise likely sending 50 cents to the China military affiliated ventures on on-going basis, one might easily argue. Nothing that should concern us for the time being, but the issue has been raised, here :0) (10) Example of a sharp point (and unclear why an attack has to be for profit, even as profit can be easily gained by leverage of the downward compression of the equity markets, especially via derivative trades in the bitgold arena decrypt.co Does China actually control Bitcoin? Ever since ASIC miners entered mass production, there have been concerns about China's monopoly over the Bitcoin hash rate. But are they justified? By Daniel Phillips In brief Chinese Bitcoin miners currently control 65% of the Bitcoin network hash rate, enough to perform a successful 51% attack. Such an attack would require collusion between potentially tens of thousands of individual Chinese miners, and remains extremely unlikely. By minting almost two-thirds of new Bitcoin, China has strong, but not absolute control over Bitcoin's market price. Despite banning cryptocurrency trading and initial coin offerings in 2018, and threatening to crack down on cryptocurrency miners in 2019, Chinese Bitcoin miners have controlled the majority of the Bitcoin hash rate since 2016. Get top stories as they break and join the conversation by following us on TwitterSince cryptocurrency miners are directly tasked with securing the Bitcoinnetwork and generating newly minted Bitcoin, any entity with the majority control of the hash rate also has a strong say about the network and its rewards are governed. According to a map produced by the University of Cambridge Centre for Alternative Finance, miners in China currently control around 65% of the average monthly share of the total Bitcoin hash rate. That’s significantly higher than in China's three nearest competitors: the United States, Russia, and Kazakhstan—each of which currently controls just 6-7% of the average Bitcoin hash rate. China dominates Bitcoin mining industry This isn't a recent change either. China has dominated the Bitcoin mining industry since its earliest days, as Bitmain and Canaan Creative—two of the earliest movers in the ASIC mining industry—both got their start in China. Because of this, the barrier to entry for mining in China has always been much lower than in the rest of the world. Chinese consumers are able to avoid the taxes and duties that come with shipping ASIC units abroad, while also benefiting from earlier access to newer generation mining hardware. Combined with comparatively low energy costs in China, it’s made the country a hotbed for cryptocurrency mining which has manifested in the dominance seen today. Could Chinese miners launch a 51% attack on Bitcoin? Since Chinese miners control almost two-thirds of the Bitcoin hash rate, it’s safe to say that they have majority control over around two-thirds of newly minted Bitcoin. Because of this, if almost all of the miners operating in China decided to launch a 51% attack against the Bitcoin network, the odds are high it would succeed. However, such a feat would require an extraordinary feat of collusion between miners, and would likely be less profitable than simply mining as usual. However, this control over the Bitcoin hash rate gives China a good deal of power when it comes to setting the current market rate of the cryptocurrency. A total of around 900 new BTC are minted each day, and around 65% of this goes to Chinese miners—who can then control how and when around $5.5 million in BTC hits the market. However, since China's Bitcoin hash rate is actually formed by the contributions of potentially tens of thousands of individual miners, it’s unlikely that any large-scale collusion to manipulate the price of Bitcoin is occurring. Jan 22Mar 22May 21Jul 20Sep 18Nov 17Jan 16$0$25000$50000 Controlling how 65% of newly minted BTC hits the market does put China in a position of power in Bitcoin markets—but it's not a position of absolute control. After all, even if 100% of all newly minted BTC was dumped on exchanges each day, it would typically constitute less than 1% of the total Bitcoin trading volume for that day—enough to briefly dent the price, but not dampen it in the long term. With the Chinese government now looking to launch its own central bank-backed digital currency, it might not be long until China takes a firmer stance against community-controlled cryptocurrencies like Bitcoin. That, more than the activities of China’s miners, could have serious ramifications for the Bitcoin network, its hash rate, and ultimately, its value. (11) Follow the blueprint and build the machine per instruction, operating at the basic monetary--financial DNA level