Electric Capital co-founder and partner Curtis Spencer believes governments could end Bitcoin by banning mining.
Spencer said that if governments wanted to eliminate Bitcoin, it would not have required costly attacks on the network. It is enough just to introduce strict restrictions on the mining of cryptocurrencies. Spencer cited the recent situation in China’s Xinjiang province, when the hashing power of Chinese mining pools plummeted due to a power outage. As a result, the total Bitcoin hash rate dropped to 154 Tx / s.
Cryptocurrency analyst Willy Woo believes that this partially explains the recent drop in the bitcoin rate to $ 50,930. According to Spencer, the authorities of any state are not prevented from deliberately turning off electricity to collapse the Bitcoin hash rate. The co-founder of Electric Capital suggested:
“If the US and Kazakhstan ban mining, Bitcoin’s hashrate will collapse by 80% -90%. Therefore, we can conclude that bitcoin is still alive thanks to the grace of governments. ”
Legislators are beginning to change their attitude towards bitcoin, so there is no need for them to “attack” miners and deliberately turn off the electricity. In contrast, Kentucky recently passed a bill providing tax breaks for miners to bring them into the region. Perhaps the participants in this industry should be more afraid not of pressure from regulators, but of unpredictable natural disasters that can really hinder the development of bitcoin.
For example, in February, mining farms in Texas were forced to suspend their operations due to a blizzard that caused power outages.
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