Jameson Lopp the co-founder and CTO of Casa explains about the lack of perspectives with BTC attacks and airs expectation that China dominance in mining will not last long.
Despite raising fear about such concentration of mining capacities in China Loop mentioned that even in case of 51% attack on Bitcoin the hackers will not have the possibility to steal much.
He mentioned that the only thing the hackers can do is to double spend their own Bitcoin.
As for stolen money cashing the best way for hackers is to use crypto exchanges and convert stolen funds into “censorship resistant cryptocurrency or stablecoin”. But it arises another problem in terms of withdrawal limits and Know Your Customer requirements. So this is another reason why big sums of Bitcoins will not be stolen at once:
“The value of the Bitcoin you still hold after the attack will likely have decreased substantially, thus a successful large attack could actually result in shooting yourself in the foot. You’d better not slip up while you’re accessing the exchange you target. For example, one hacker returned $25M in stolen funds after leaking their IP address.”
Mining under state control?
Based on Loop’s opinion it is almost impossible for states to get control over mining facilities so Bitcoin holders are sure to take immediate actions in order to prevent such situtation thinks it would be nearly impossible for a nation state to get in total control of mining facilities.
As for China it is worth remembering that 70% of hashpower is in less than 10 mining pools and miners are able to easily switch from one pool to another. Plus lot of active users issue immediate notifications in social media in case if such situation occurs.
Lopp mentions the main reason of such facilities concentration in China since 2015: most of mining chips are manufactured in Asia. Another reason is a political and economic security in the country which prompts the development of mining infrastructure.