50% of users think bitcoin price will rise, report says
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A Genesis Mining report shows that only 50% of bitcoin users think the price of cryptocurrency will rise in the next three months.
The State of Crypto Report 2020 report, which surveyed 750 Bitcoin holders, found that 32% believed the price had dropped in the next three months, while 14% thought the price would remain stable.
Extending the term to 4-6 months showed similar results. Of those interviewed, 51% expected a price increase, 29% opted for a drop and 14% did not foresee any difference.
The biggest threats to Bitcoin mining
The report also examined some of the threats facing the mining sector. The main concern was that centralization was approaching.
“The bitcoin mining industry has evolved from domestic miners to multi-million dollar commercial facilities, the ideal of decentralization is being threatened,” the report said.
The interviewees, however, were divided. One-third shared the growing discomfort surrounding centralization, suggesting that a handful of mining companies would eventually dominate the sector. On the other hand, 31% were optimistic that the sector will remain rooted in decentralization, with community developments transferring power to smaller miners.
China also dominates the Bitcoin mining industry. More than half of Bitcoin’s total hashing power comes from China – mainly due to cheap tariffs and renewable hydropower. And more than half of the respondents were concerned, with 24% of them saying that they were “very concerned”.
With such high levels of centralization in the sector, Genesis asked whether a 51% attack represents a major risk.
A 51% attack can occur when a single miner, or group of miners, has more than half of all the mining power in the network. With the resulting control, malicious actors can censor transactions or even create false ones – sabotaging the integrity of the network.
The answer was an overwhelming yes. Almost two-thirds of respondents suggested that a 51% attack was a legitimate concern for investors, while only 15% disagreed. Another 20% said they did not know.
Despite high levels of centralization and large mining platforms, 39% of respondents said they still mine their own Bitcoin. About 17% contract their mining with cloud companies, such as Amazon Web Services.
On the other hand, 43% said they had never tried to mine.
* Translated and republished with authorization from Decrypt Media
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