In a recent article published in The Hill, former Ripple CEO Chris Larsen argues that China has enough power to take control of Bitcoin because of these facts:
“At least 65 percent of crypto mining takes place in China. This means that the Chinese government has the majority required to exercise control over these protocols and effectively block or reverse transactions. “
He also believes that China is subsidizing “the vast amount of energy” in order to keep a tight grip on the world’s largest blockchain.
How China Can Attack Bitcoin
While the US and Russia are busy building huge mining farms, the Chinese province of Sichuan alone accounts for 54 percent of the total hash rate. With centralization in China, fears are mounting that China will be able to launch a 51 percent attack. A research paper published by US scientists in 2018 showed how China could actually exert a great deal of influence on the Bitcoin blockchain through multiple attack vectors. Chinese mining pools could work together to deanonymize certain users, thereby destabilizing the network.
Is Bitcoin a “Chinese Controlled Coin”?
Ripple has been aggressively promoting the narrative of Bitcoin as a “Chinese controlled cryptocurrency” for years, while at the same time demanding regulatory clarity in the US.
In 2018, Brad Garlinghouse, the current CEO of the XRP-affiliated company, claimed that other countries would not adopt the coin controlled by the communist regime: “How do we know China won’t intervene? How many countries want to use a Chinese controlled currency? It just won’t happen ”.