The potential influence of national governments in the crypto market, or the extent of their power, has sparked multiple debates in recent weeks. Recently, Electric Capital co-founder Curtis Spencer suggested that the world political class has the future of Bitcoin (BTC) and its entire network in their hands.
In Spencer’s view, the decision of different governments not to impose severe restrictions on crypto trading or mining allows the market to grow. “I think maybe the government could stop Bitcoin. If you think about the cost of attacking the network, it is not something that nation-states cannot do,” the businessman slipped.
In that sense, the CEO explained that if China, the United States and Kazakhstan stop the mining activity of their countries, it would close between 80% to 90% hash rate. “I think the fact that Bitcoin is still here means that governments support it”, said Spencer.
To reinforce his thesis, he recalled the recent blackout that occurred in the Xinjiang region of China – which currently represents a quarter of the global hash rate – which, according to several specialists, was one of the causes of the last correction of almost 20% in the price of BTC. According to local media reports, the cuts were scheduled by the government to facilitate security inspections in the area. In other words, the possibility of reducing the hash rate is in your hands.
However, the outlook is not so bleak, and evens less if the factual facts are analyzed. Many countries, even China or the United States, are moving towards regulatory frameworks for the crypto market. Governments notice the growing interest in adoption and interest in digital assets, and they understand that adapting their legislation towards the emerging market is a fundamental step to facilitate financial modernization.