China holds threatening influence over Bitcoin - perhaps even the ability to attack and ultimately destroy the entire Bitcoin network.

They have the capability and strong motives to perform on variety of attacks against Bitcoin. Even worse, it is already exerting its power over Bitcoin in a myriad of ways.

Research shown that the Bitcoin mining ecosystem has become heavily centralised. The level of centralisation found in the Bitcoin mining ecosystem is the biggest issue for the peer-to-peer digital cash system today. As a technology depends on decentralisation in order to provide a censorship-resistant bearer electronic, any trend towards centralisation should be viewed as problematic. Having so much mining power centralised in any single country exposes the Bitcoin network to a worrying degree of political risk. This can be seen as a threat to china’s economy or a competitor to their own planned digital currency, they could wreak untold havoc in the Bitcoin ecosystem.

Cryptocurrency miners have banded to such an extent that over 80 percent of Bitcoin mining is performed by six mining pools, with five of those managed directly by individuals or companies based in China.

Chinese mining pools control more than 70% of the Bitcoin network’s collective hash rate. Not only does China manufacture most of the world’s mining equipment, but massive mining farms are located there to take advantage of extremely cheap electricity prices.

The fact that Chinese mining pools control so much of the Bitcoin ecosystem has direct consequences.

In my opinion, china will have the upper hand in making a huge impact on Bitcoin.