Quote from: very_452001 on Today at 12:28:56 AM

Quote from: Xavofat on February 13, 2021, 11:30:57 PM

More important than the fact that the majority of mining takes place in China is the fact that the majority of ASIC devices are manufactured by one company: BITMAIN, which is a Chinese company.

The restrictions on BTC in China are not necessarily because China doesn't see any benefit in BTC business, buy because the government wants to suppress any attempt to access the free Internet. If a monopoly like BITMAIN is operating in China they will be more interested in controlling as much of the company's activities as possible rather than restricting BTC as a whole.

Dont the chinese state see any taxable benefits in the btc business?

Yes, that's presumably why they haven't banned BITMAIN and some major Bitcoin related companies started in China (like the Huobi exchange). They just ban the most egregious of speculative crypto use (including ICOs) and then allow people to keep using it in contexts that they are sure are legal.

Quote from: very_452001 on Today at 12:28:56 AM

how secure will the btc network be with half of its hashrate wiped off overnight? Can the btc network auto adjust quickly to any quick change in mining circumstances before any attacks to it?

Yes, every 2016 blocks the network adjusts its difficulty to keep the average rate of blocks being mined at approximately one every ten minutes. This is usually about two weeks, but if the hashrate was halved it would take twice as long per block until the next difficulty adjustment. The reward for each block, however, would increase because higher transaction fees would be required to include a transaction in the now less frequent blocks.

One significant problem is that most mining pools are based in China. The only mining pool not based in China with a significant percentage of the hashrate (about 10%) directed to it is Slush Pool, from the Czech Republic.

If Bitcoin pools and mining and everything was banned in China (assuming they know where all the people running them are), the remainder of the world's miners would redirect to smaller pools, removing the Chinese monopoly on mining and ultimately making the network more secure by getting rid of the risk of small groups in China reaching the 51% attack threshold (which BITMAIN approached in 2018).

Quote from: very_452001 on Today at 12:28:56 AM

Whats bitcoin got to do with free internet? Bitcoin is a currency not a website where the chinese state can restrict access to sites like facebook, youtube etc.

Bitcoin is intertwined with the free Internet. Its users and HODLERS often have libertarian ideals and a fairly small amount (which the Chinese government could easily focus on) use it for crime. Even though Bitcoin transactions cannot be directly prevented, China could create a culture of fear around using exchanges and accessing Bitcoin related websites.