Electric Capital co-founder Curtis Spencer has hinted that the Bitcoin network may owe its ongoing existence to the grace of world governments.
In a panel at the Collision web summit today, Spencer said lawmakers are giving Bitcoin (BTC) a chance to grow by not imposing harsher restrictions on mining operations in their home country.
“Can Bitcoin really be stopped by the government?” says Spencer. “Actually, I think it might be. If you consider the cost of attacking the network, this is not something nation states cannot do, ”he went on and added:
“Look at what happened in Xinjang. You can actually shut down the Bitcoin mining network pretty quickly, especially if the US stops all US miners, Kazakhstan stops all miners there, it will close almost 80-90% of that hash rate pretty quickly. I think the fact that Bitcoin is still here means that governments are supportive. ”
Spencer was referring to recent events in China’s Xinjiang region, which represents about 25% of Bitcoin’s global hash rate. Crypto market analyst Willy Woo also claimed that he thought BTC dropped to $ 50,000 over the weekend was a result of the blackout in the region.
Power outages were reported to have been initiated to facilitate security checks in the region, which means that nothing is preventing the Chinese government from deliberately lowering the hash rate if it wishes.
Currently, the regulatory environment in the United States seems to be standing by crypto miners instead of pulling the plug, but some farms in Texas had to restrict operations during a major winter storm this year. Kentucky lawmakers also recently passed two bills that will give tax breaks to crypto miners to attract new firms to the state.