CHINESE INFLUENCE THE FUTURE Miner Bitcoin

As bitcoin community strives to achieve consensus on the solution to the problem of time bitcoin transaction, according to Bloomberg said that the meeting in Silicon Valley may indicate his chances of achieving. The process is likely to reflect the degree of influence of China miners who control 70% of bitcoin emission.

The consensus on what needs to be done to reduce the time of the confirmation of transactions is quite important for the future of bitcoin. The inability to resolve this issue could undermine growth in bitcoin 4475% over the past five years.

Concerns over China's influence

Bitcoin Some fans worried that the Chinese influence can undermine the decentralized bitcoin, which, in their opinion, is its main advantage in comparison with other currencies.

Peter Todd (Peter Todd), Bitcoin developer, calls China's dominance in the field of mining bitcoin problem. He believes that China's impact on the bitcoin can simplify the implementation of control over it by the Chinese government.

Some researchers are deeply concerned about the possible influence of the Chinese Communist Party, which maintains strict control over capital and Internet resources.

There is little evidence of such intervention, however, the PBOC said that bitcoin is not a real currency and seeks to minimize its influence in the country's financial system.

The influence exerted by miners,

The Chinese influence, which is likely to affect the future cryptocurrency miners will come from China, because any proposal updates bitcoin miners structure requires approval.

Wang Chong (Wang Chun), AntPool operator mayningovogo largest pool in the world, said that it was miners run the voting outcome.

One of the groups in the discussion of the block size, known as Bitcoin Classic, bitcoin wants to increase the size of the block to ensure the immutability of the transaction processing time. Another group, Bitcoin Core, trying to resist any serious change.

Bitcoin Core also believes that the increase in block size will contribute to miners, equipment which is capable of processing more extensive calculations, which require large blocks.

In February, the developers Core and some major Chinese miners have agreed to introduce a new code that will be available this month and can become active in the next year, with sufficient support.

consensus Waiting

Wu Gang (Wu Gang), CEO HaoBTC, controlling about 5% of the total heshreyta bitcoin network, said that the consensus will serve as a model for future cooperation.

If agreement is not reached, the processing time will increase to several hours or days, making bitcoin uncomfortable. Credit cards and money transfer services such as PayPal offer almost instant payment confirmation. Currently bitcoin network can carry about seven transactions per second. In turn, Visa can carry more than 24,000 transactions per second.

Jamie Dimon (Jamie Dimon), CEO of JPMorgan Chase & Co., and others argue that digital currency can not survive in the foreign exchange market without a central authority, the volume of which is estimated at $ 5.3 trillion per day. In turn, the bitcoin capitalization is less than $ 11 billion and spends about $ 120 million daily transactions.

Cihan Wu (Wu Jihan), Managing AntPool, the second largest in the world mayningovym pool and manufacturer of equipment for mining said that Chinese miners will play an important role in achieving a consensus and its forecasts are optimistic.

Chinese miners use cheap labor, cheap energy and cheap plants. At the same time, Chinese investors want to diversify their assets into RMB at the expense of currency devaluation.