• Wed. Jun 22nd, 2022

China could shut down bitcoin network: strategist

China could shut down bitcoin, warns an American strategist.

During debate with Anthony “Pomp” Pompliano of Morgan Creek Capital, Michael Green, partner of investment advisory firm Logica Capital, said China’s Bitcoin mining dominance should alarm Americans, Cointelegraph reports.

The debate between Green, a bitcoin skeptic, and Pomp, a leading advocate of hard money, was hosted by digital asset media Real Vision of investment legend Raoul Pal.

Green said the dominant share of China’s hash rate, the amount of computing power devoted to operating the network, makes bitcoin “incredibly vulnerable.”

“The vast majority of mining activity takes place in regions like China, Russia and Iran, and if we incorporate the participation of mining pools, they control over 90% of the hash rate. It’s not a decentralized system, ”Green said.

“The current estimate of the cost of closing the bitcoin network […] if, for example, China just decided to start mining empty blocks […] is about $ 7 billion per year. For a nation state, this is nothing.

He added: “It is completely absurd that the US government is putting itself in a situation where control of the monetary system has been outsourced in the same way that we have chosen to outsource our iPhone production.

However, Pomp said his reasoning was flawed as he failed to take into account that bitcoin is “the most powerful computer network in the world. […] by all measures. He pointed to the recent “diversification” of China’s hash rate centralization, highlighting significant increases in hash power ordered by US-based entities.

Pompliano also took issue with Green’s inference that the geographic distribution of bitcoin’s hash rate is representative of a nation-state’s ability to exert control over the network, stating, “It’s not because there’s sort of a flow of capital elsewhere that these governments are controlling. “

Green also described bitcoin as a criminal medium of exchange and a tool used by America’s enemies to bypass and undermine the dollar. Green predicted that the U.S. government will eventually ban bitcoin.

“In terms of a property ban, I am not advocating this,” he said. “I’m actually suggesting that I think [a ban] is the end result. Whether it is good or bad will ultimately be decided by the future.

Pomp said such a ban would be a costly strategic mistake that would undermine the country’s ability to compete globally.

He added: “We should kiss [bitcoin] and keep the United States the world leader.

During this time…

SWIFT, the People’s Bank of China (PBoC) Clearinghouse and Digital Currency Research Institute have joined forces to create a financial gateway company in China, The Block reports.

The new entity, called Finance Gateway Information Service Limited, was registered in Beijing on Jan. 16 with 10 million euros ($ 12 million) in registered capital, according to public records.

The global interbank settlement body contributed 55% of the capital through a subsidiary in Hong Kong. Notably, the China National Clearing Center, a 100% domestic settlement subsidiary of the PBoC, owns 34% of the new entity.

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