China’s Economic Planning Body Labels Bitcoin Mining an ‘Undesirable’ Industry
The Chinese Economic Planning Body has recently announced that it wants to eliminate Bitcoin mining in the country. A target date or plan for how to eliminate Bitcoin mining has not been set, meaning that such activities could be phased out immediately.
Matt Hawkins, CEO at Cudo Miner, comments on what effect China’s planned ban on cryptocurrency mining will have on the Bitcoin network and cryptocurrencies in general.
Matt Hawkins, CEO, Cudo Miner says:
We have already seen the Chinese government is clamping down on the use of Bitcoin as a currency, competing with the Yuan, but this has had limited impact thus far. However, if local authorities begin targeting mining farms, this could have a substantial impact on Bitcoin’s global infrastructure. People talk a lot about the risks of a 51% attack, but the problem with accumulating so much
centralisedhash power in areas such as China is that – should it be turned off – the Bitcoin network’s performance will be harmed.
The current status of Bitmain and its Chinese counterparts is significant to miners and the Bitcoin ecosystem. In the latest Antminer product, Bitmain will substantially reduce the global electricity use of Bitcoin, but only if the company is in a position to ship its products and if mining farm operators in China, and other regions throughout the world, take the risk of investing.
Other networks, such as Monero and GRIN, are working hard to deploy ASIC-resistant Proof of Work algorithms that help keep GPU miners on the network. Ethereum will soon deploy Progressive Proof of Work to favour GPU characteristics, although you can argue it is already centralised through GPU farms. It’s one of the biggest challenges of distributed computing – without central coordination, computing resources are decided by the market and are at the whim of regional policies throughout the world.”