Bitcoin Q&A: Could the State Sponsored 51% Attack Work
Keywords/phrases: Could state authorities shut down Bitcoin at any time? It would be difficult to launch a state-sponsored 51%attack. It’s true that a lot of the mining takes place in China. However, some of the pools may be concentrated in China. But the actual mining farms are located in remote rural areas. The local economy is a large part of these areas’ mining farms. You must first pay them a salary before a hired gun can tell them to close down the mine. The Chinese government is a minor bidder since the mining farm operator is lavishly paying them. You should not underestimate the resistance that you will see in areas where this is having an impact on rural incomes and areas with high electricity capacity. The greatest threat to the Chinese government is not Bitcoin or America. It’s a million peasants with pitchforks that have had enough. They’ve been trying to forestall that from happening for 25 years. Rural areas are the goose that lays the golden eggs. This is why economic growth is so important. Do not underestimate the effectiveness of a 51% attack, nor how long it could last, or what countermeasures you could implement. This system will not be static and indifferent. It’s not that they aren’t trying, or don’t want it to stop after 7 years of Bitcoin.
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0: 00 A significant fraction of the miners are in China. It is possible to launch a 51% attack on China. It is absurd to think that Chinese miners wouldn’t attack, even with guns to their heads. If a nation-state mandates it
, there is nothing in Bitcoin to guarantee you won’t be attacked 51%.0: 55 Before your hired guns can come up to you and tell them to close down the mine, they first need to be paid
1: 41 America isn’t the biggest threat to China’s government.
I’m a journalist who specializes in investigative reporting and writing. I have written for the New York Times and other publications.