Governments have finally sat up and taken notice of crypto.
According to a variety of analysts, it’s unlikely that any single country — including China — could gain a geopolitical advantage as a result of widespread bitcoin adoption by governments and central banks.
If bitcoin does ever become a reserve asset, the most obvious hypothetical concern that arises is that China — which still hosts most of the Bitcoin blockchain’s hashpower — somehow gains a considerable amount of political leverage over the rest of the world.
“First, even though entities are located in China, they are different entities with different owners and probably different reasons for mining.
“Despite the fact that the majority of hash power comes from China, most of the mining field operators in the country are actually running cloud mining services — a type of proximity hosting that is ultimately contributed by end users instead of individuals or companies controlling the entire mining rigs.
This warning extends to any other government or state that may attempt to wield leverage over the Bitcoin blockchain.
“Bitcoin could become sovereign collateral to back legal tenders like gold if that is the case.
“Placing BTC in Fed reserves could send a dollar sell signal across the world.
“So, I think the more likely scenario is Bitcoin acting as a catalyst to force central banks to manage their fiat currencies in a more responsible manner.