Co-founder and partner of Electric Capital suggested that the Bitcoin network may owe its continued existence to global governments.
Speaking at an online summit on Tuesday, Spencer said that lawmakers are the ones who give Bitcoin (BTC) a chance to grow without imposing tougher restrictions on mining in their countries. The CEO of Electric Capital spoke about the country’s investment in cryptocurrency in 2021, along with Michael Jordan of Galaxy Digital, Kartik Talwar of A Capital, Ash Egan of an accomplice, Tara Tan of IDEO CoLab Ventures, and CEO Min Teo of Consensys.
“Can the authorities really stop Bitcoin?” Spencer asked. “I think it could have been. When you think about the cost of attacking a network, there is nothing that nation states cannot do.
“Look what happened in Xinjiang. In fact, you can shut down the bitcoin mining network pretty quickly, especially if the United States stops all American miners and Kazakhstan stops all miners there – such an 80% to 90% hash rate superiority is very fast. ” that [Bitcoin is still] here means government support. ”
Spencer pointed to recent developments in the Xinjiang region of China, which accounts for about 25% of the world’s bitcoin retail trade. Cryptomarket analyst Willie Wu said the $ 50,000 BTC crash over the weekend was the result of a power outage in the area, after which the hash rate dropped from 172 TB / s to 154 million TH / s.
Power outages have been reported to facilitate security checks in the area, indicating that nothing seems to be stopping the Chinese government from deliberately giving up its unwillingness to split. Although his colleague Jordan claims that lawmakers have begun to change their stance on cryptocurrencies, he apparently referred to the authorities who did not try to shut down the network on the Internet, and did not attack the miners.
Jordan said, “You hear regulators talk about the complex modern concept that you can’t block bitcoin. “In fact, it is impossible to block it.
For now, the regulatory environment in the US seems to favor workers with encrypted memory over disabling them – although some farms in Texas were forced to scale back during a severe winter storm this year. Kentucky lawmakers also recently passed two bills that will give tax breaks to cryptocurrency workers in an attempt to bring new companies into the state.