Rajeev Khemani said that malicious codes are capable of partially or completely stopping Bitcoin mining in certain geographic areas, causing a drop in the cryptocurrency’s hashrate:
“Whenever you have software or firmware from a foreign entity connected to your energy infrastructure (which is what Bitcoin has become), you must ensure that you adequately mitigate the risks of using such software. To a certain extent, US national security depends on the decentralization of Bitcoin mining.”
According to the businessman, third-party firmware of mining equipment could, in theory, be used to launch a “51% attack” on the Bitcoin network or compromise the US energy infrastructure. If the production of mining equipment is located primarily in the territory of one country, its government may limit the export of products and leave miners without access to the technology, the investor believes.
Kemani said the U.S. should pursue policies that encourage the production of cryptocurrency mining equipment so that one country cannot control a large portion of the total computing power or equipment supply.
Earlier, the insurance company Relm Insurance launched the first BTC BI insurance policy on the market, protecting mining companies from the risks of equipment downtime and breakdown.
Source: Bits
I am an experienced journalist, writer, and editor with a passion for finance and business news. I have been working in the journalism field for over 6 years, covering a variety of topics from finance to technology. As an author at World Stock Market, I specialize in finance business-related topics.
