Even China’s Hegemony on Bitcoin Mining Can’t Make It a Centralized Technology

bitcoin mining photo

When Elon Musk was ranting openly about how bad Bitcoin is for the environment — even though the billionaire investor had his company Tesla pour $1.5 billion into the flagship cryptocurrency — one of his arguments concerned its public ledger’s centralization.

“Bitcoin is actually highly centralized, with a supermajority controlled by a handful of big mining (aka hashing) companies,” Musk tweeted. “A single coal mine in Xinjiang flooded, almost killing miners, and the Bitcoin hash rate dropped 40%. Sound “decentralized” to you?”

The criticism served as reminiscent of multiple reports that questioned the Bitcoin network and its claims of decentralization when more than 80 percent of its core production takes place in a Chinese province. Bloomberg reported that only five companies control a majority of the Bitcoin network with its excessive computational input. In short, that makes the de-facto ruler of the cryptocurrency that has risen to fame because of its I-have-no-master claim.

Published by Yashu Gola

Globetrotter Yashu Gola has been working as a financial/crypto market journalist since 2013. He is an information technology graduate, a cryptography junkie, a filmmaking enthusiast, and an avid reader of Jon Erickson, Agatha Christie, JK Rowling, and Isaac Asimov.