The new bitcoin study suggests that the Chinese centralization of mining encryption poses a threat to the industry

According to a new study by Princeton University and Florida International University, Bitcoin has a very dangerous threat. The joint study explains that the most popular virtual currency has a significant mineral geographic centralization. China accounts for almost 75% of total mining activities.

The study analyzed the threats posed by China to the security, stability and profitability of Bitcoin. According to the study, one of the most powerful potential adversaries of this cryptocurrency is this gigantic Asian country since it can potentially influence it.

The researchers explain that 74% of the hash power used for Bitcoin is generated by Chinese mining pools. One of these companies is Bitmain. In addition, the study explores several ways in which it can use the mining power located in the country to attack Bitcoin.

China has been very hostile to Bitcoin. Last year, the government decided to ban virtual currencies and commercial activities. Initial coin offerings (ICOs) have also been banned.

The document states that mining pools run by individuals based in China constituted more than half of the total network power since 2015. In addition, 80% of Bitcoin's mining operations were performed by six mining pools until June . Of these six pools, five were operated by Chinese companies.

At the same time, if these pools are in China, a 51% attack could be possible if executed by the government. The Chinese government has always attacked freedom on the internet. Furthermore, various agencies operate on extensive surveillance and censorship.

Although mining capabilities do not allow the Chinese government to completely destroy the network, it can combine it with different tools to damage network and Bitcoin markets.

On the issue, the exchange informed:

"We conclude that China has mature capabilities and strong reasons to carry out a series of attacks against Bitcoin."

Clearly, Bitcoin represents the opposite view of Chinese centralization. While Bitcoin is a decentralized network, the Chinese government has done everything possible to control every market in the country as much as possible.

The study concludes that China is a threat to Bitcoin. However, if the government decides to start the extraction of virtual currencies or to attack the network, other miners from around the world could defend Bitcoin's blockchain by adding more hashing power.