Blockchain Capital Managing Partner Brock Pierce said in a recent interview that although there are legitimate concerns with the current state of Bitcoin mining, the blockchain-focused venture capitalist indicated China’s stranglehold on the mining process will not last forever.
Pierce was interviewed on the most recent episode of This Week in Startups, where he was asked about the issue of bitcoin mining centralization. The source of the question appeared to be Mike Hearn’s farewell Medium post in which the former Bitcoin developer claimed the Bitcoin payment network is “controlled by China.”
Pierce Would Not Invest in a Chinese Bitcoin Mining Operation
Pierce said bitcoin mining in China is probably not always sanctioned by the Chinese government. In fact, Pierce suspects various mining operations in the country may be going on without the government’s knowledge and behind closed doors.
Pierce said he would not invest in one of these mining operations due to the legal uncertainty surrounding them.
“In China, you’ve got a lot of the hydro dams. They offer one to two – we’ll call it two to four megawatt facilities. The problem you have in China is you’re not allowed to buy energy from anyone except