Is China trying to take over Bitcoin? Why they need Bitcoin Cash and what they are trying to achieve - in my opinion.
First few words about the role of China in Bitcoin mining so you can understand the context.
Currently China controls over 70% of Bitcoin mining. You can find detailed information here: https://www.buybitcoinworldwide.com/mining/china/
China is the undisputed world leader in Bitcoin mining. Chinese mining pools control more than 70% of the Bitcoin network’s collective hashrate. 15% of the hash rate is missing from above chart, but it’s likely that China controls an even greater amount.
Not only does China manufacture most of the world’s mining equipment, but massive mining farms are located there to take advantage of extremely cheap electricity prices.
More informations about why China has centralized Bitcoin mining: https://www.bitcoinmining.com/chinas-dominance-in-bitcoin-mining/
The author concludes:
Having so much mining power incorporated in any single nation uncovered the Bitcoin system to a stressing level of political hazard.
Ought to the Chinese government choose to get serious about Bitcoin, maybe considering it to be a danger to their economy or a contender to their own arranged computerized cash, they could wreak untold destruction in the Bitcoin environment.
This was written on April 4, 2017 by Melvin Draupnir.
Little digression here. If you ask what is China doing best, I would say copying. Don't get me wrong here, I think it's a true virtue! Sometimes they can even improve over the original and organizing low-cost mass production is a art in itself.
So, investing so much money into whole mining factories, using as much electricity as little countries - would China allow to have no control over Bitcoin apart from just the hashpower?
In my opinion: no.
That's why we're seeing the creation of BCC - Bitcoin Cash (China). What first started as an announcement of a small Chinese exchange / mine is getting attention from other mines - of course only those from China, what a coincidence. According to user @ancap47:
BTC.TOP has said that they will divide hash rate on price, so that means 1/6 of their giant mining farm is going to be mining bitcoin cash (source).
Are we gonna see a snow ball effect in the upcoming days? Chinese folks have cash, that we know for sure. They will have no problem with investing tons of CNY into Bitcoin China in order to display its market dominance. I can understand that - Chinese are a proud nation and they rather spend money on their own version of Bitcoin than the worldwide accepted one.
On a side note: China has no democracy. It's ruled by one communist party - they control everything that happens in the country.
China Coin propaganda on steemit.com
The previously mentioned user @ancap47 released lately a very interesting article about Bitcoin Core developers:
@ancap47/govt-sponsored-segwit-is-doa-dead-on-arrival-here-s-why
If you don't know - Bitcoin Core is a group of over 100 developers from different countries witch no clear leader. It's rather a open-source community that collectively wants to produce the best and safest Bitcoin code possible. According to @ancap47 they are all paid by banking corporations (AXA), most probably also by Jews and reptalians. That's fine by me, everyone can have his own opinion but one little thing would be pretty useful - sources. Sadly, @ancap47 provided none. In the same time he downvotes, thus deletes, any opposing point of view in the comments and by this removes any discussion. You can see the effects of it here:
@kingscrown/viabtc-starts-trading-bitcoincash-bcc-possible-split-chain-of-btc
Also, he accuse me for being paid by the same banking corporations. Probably that's why I have 100 SP and he has 10 times more. As you all know, Goldman Sachs are really short of money lately. Happily I was able to inform them about the situation and they send me $1 so I can upvote at least one my comment in the discussion via voting bot ;) You can see it here: