What are we really talking about with respect to bitcoin’s bookkeeping rights?

Bitcoin has gone from development rights, bargaining rights, and bookkeeping rights to de-Chineseing one by one.

What are we really talking about with respect to bitcoin's bookkeeping rights?

According to data provided by btc.com, in 8 days, bitcoin mining difficulty will be lowered again by 13.51%. Adding to the two downgrades on May 30 – 15.97% and June 14 – 5.30%, we will then see another triple drop in mining difficulty.

The reason for this is well known: under heavy pressure, it is an indisputable fact that the global arithmetic power pattern is being redistributed, and during this period, bitcoin mining arithmetic power is bound to fluctuate.

Looking back at the history of Bitcoin, there is an argument that Bitcoin has gone from development rights, bargaining rights, and bookkeeping rights to de-china development one by one.

From 2013 to 2017, the bitcoin expansion debate ended with Chinese miners choosing to fork bitcoin, and Chinese miners lost their right to participate in the development of bitcoin’s core code.

From 2019 to 2021, the major bitcoin holdings gradually shift from Chinese exchanges such as Coinan and Firecoin to Wall Street capital such as Coinbase and Grayscale, and the Chinese market gradually loses bargaining power over bitcoin.

With the crackdown on virtual mining such as Bitcoin in 2021, Bitcoin’s arithmetic power will gradually shift from China to regions such as North America, with China gradually losing its right to keep track of Bitcoin.

In the past, the Chinese region has long held more than 50% of Bitcoin’s arithmetic power, firmly holding the bookkeeping power of Bitcoin. This dominance has allowed the Chinese bitcoin miner community to produce more bitcoin and has undoubtedly driven demand for bitcoin mining equipment in the Chinese market. This time around, the “surrender” of bitcoin bookkeeping rights has been particularly regrettable for domestic insiders compared to overseas markets that have formed bitcoin mining committees and “opened their doors” to miners.

So what exactly are we talking about when we talk about bitcoin bookkeeping rights?

In the Bitcoin network, miners across the network compete for arithmetic power, and those with more arithmetic power have more computing power and are more likely to gain bookkeeping rights – the right to confirm transactions that occur in the Bitcoin system over a period of time. The Bitcoin network campaigns for bookkeeping rights roughly every 10 minutes, and miners who successfully grab bookkeeping rights are responsible for keeping the books and synchronizing the book information to the entire network. In return, miners are rewarded with new bitcoins generated by the system. This is what we often hear as “mining”.

In short, bitcoin “mining” is a method designed to incentivize users to participate in bookkeeping when the bitcoin network was first created.

It is true that the nature of the blockchain is decentralized, and the more decentralized the distribution of computing power, the more secure it is. But for China, which now has to deal with various international business wars, the loss of such an original advantage is not a good thing in any case.

According to Chen Weixing, founder of PanCity Capital and Fast Taxi, if Bitcoin succeeds, this so-called “mining”, which is the financial bookkeeping power of the digital world, will evolve into a power similar to a strengthened version of swift, which will be responsible for clearing not only reserve currencies, but also most of humanity’s core digital assets.

Liu Changyong, director of the Blockchain Economy Research Center of Chongqing Industrial and Commercial University, told Golden Finance that neither arithmetic power nor bookkeeping power is important, but the important arithmetic power and the revenue brought in the bookkeeping competition and the direct incentive to hardware production and research and development. What we have lost is an industry, from chips, mining machines, mining farms, mining pools the entire industry chain is gone.

“It doesn’t matter if Bitcoin has all this arithmetic power we have, the difficulty will automatically adjust to make the system stable and safe to run. In other words, it doesn’t matter who has the bookkeeping power, PoW is the ability to ensure that no matter who keeps the books, they will keep them honest. What matters is that we lose the opportunity to participate and grow in this area over the long term.” Liu Changyong added, “What follows the exchanges and mining flows away is capital, technology, talent and markets. What the exchanges take away is mainly software technology, and what the mining industry takes away is mainly hardware technology. Although the industry is small now, it represents the early days of the cryptographic economy. Killing it now would be like crushing an ant. But the significance is like killing Taobao and QQ of twenty years ago.”

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-are-we-really-talking-about-with-respect-to-bitcoins-bookkeeping-rights/
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