What’s Going On?
Four miners in China control over 50 percent of Bitcoin, claims the head of enterprise crypto company Ripple.
Why Does It Matter?
The shocking claim was made by Ripple CEO Brad Garlinghouse while speaking at the Stifel Financial 2018 Cross Sector Insight Conference at the InterContinental Boston, reported TheStreet, which also organised the event.
China’s control of the cryptocurrency means Bitcoin will not disrupt banks, claimed Garlinghouse, although it will play an important role in the way the world’s financial system works.
“A number of prominent people, even Steve Wozniak, has said that he sees a world where Bitcoin is the primary currency,” Garlinghouse told the crowd. “I think that’s absurd. I don’t think that any major economy will allow that to happen.
“There are four miners in China that control over 50 percent of Bitcoin. How do we know that China won’t intervene? How many countries want to use a Chinese-controlled currency? It’s just not going to happen.”
In related developments, the New York Times reported a campaign of price manipulation carried out last year may have accounted for at least half of the price increase in cryptocurrencies, including Bitcoin, according to a paper released on Wednesday by John M. Griffin and Amin Shams, of the Department of Finance at the University of Texas at Austin.