The technological competition between the United States and China is now a recognized fact. No matter the sector, whether it is artificial intelligence or the 5G Internet, the two biggest powers in the world are trying to outdo each other and dominate it. And in the case of Blockchain technology, China is certainly ahead. This motivated Ripple’s executive, Chris Larsen, to wonder if China can reverse transactions with Bitcoin.
Bitcoin Mining Farms in Iran Are Targeting Snitches and Police
Competition for the Blockchain
In few technological sectors, the competition between the great world powers is as clear as in the case of Blockchain technology. This is because, despite the fact that most governments in the world have no sympathy for cryptomonies, and the threat they represent to their control over monetary policy. They recognize the value of Blockchain technology beyond Bitcoin.
Thus, large companies, organizations and governments have invested millions of dollars in recent years. In an attempt to train as many experts in blockchain as possible. And to take advantage of their expertise to get ahead in the race for Blockchain dominance.
And in this sense, few countries have invested as much as China in this technology. For the Asian giant, the Blockchain is not only an important element for its technological development. It is one of the fundamental pillars in its strategy to become the world’s largest power. With such important figures within the Chinese government as President Xi Jinping, calling his country to invest and research more in this sector.
Forecast: Bitcoin Price (BTC) begins correction
China and the Bitcoin domain
Therefore, it is not surprising that, according to a study by the University of Cambridge, China gathers in its territory most of the Bitcoin mining on the planet. Having currently 65% of the Hash (computing power) rate within the BTC Blockchain. Thanks essentially to the policy of subsidies in the price of electric energy followed by the Chinese government. This makes the mining of Bitcoin Rush in the Asian country extremely profitable.
Although the study reflecting these figures is based on a sampling of one third of the Hash Rate and not its entirety, so the actual data may be slightly different from these. The danger posed by this concentration of power by China over Bitcoin’s Blockchain is quite real, according to Larsen.
Well, if China keeps most of the computing power in the Bitcoin chain on its territory. And knowing the tendency of the Chinese government to intervene in the operation of companies on its territory. It’s possible to imagine a situation in which Beijing orders its mining farms to reverse certain transactions in the Bitcoin Blockchain. Effectively ending the inviolability of the operation of cryptomoney.
For this reason, and in the face of the real risk of manipulation of the Bitcoin Blockchain, Larsen calls on the United States to redouble its efforts in Blockchain matters. And especially to increase its involvement in the Bitcoin chain. With the objective of reducing the dominance that China currently maintains over BTC.