Chinese Bitcoin Ban and Mining Dominance Could Be a Problem

While the world tries to figure out what China is doing in regards to Bitcoin I think there is one serious threat that is not being reflected in the Bitcoin price. While its been widely reported that China is essentially closing all Bitcoin exchanges another news source is reporting that Bitcoin “executives” are forbidden from leaving the country and makes a note that all Bitcoin businesses in China are under threat. Including miners.

So what?

Chinese dominate bitcoin mining, and therefore are the engine of the Bitcoin network. If they shut off tomorrow who is to say exactly what would happen – but the Bitcoin network would most certainly slow way down.

China dominates Bitcoin Mining

While its certainly possible for other countries to pick up what China drops, it wouldn’t happen overnight.

I really do not know how real this threat is, but its important to be aware of what may lie ahead.