Role of Chinese Cultural traditions in Determining Bitcoin Development Trends

The path of Bitcoin establishment wasn’t easy. Year after year the cryptocurrency has to face intrigues of antagonists. The year 2015 is memorable due to active debates between supporters of network updates and their antagonists. The culmination of debates took place in January. The statement of one of the developers about the failure of the alternative monetary unit and his consecutive escape from the team led to the decline in the exchange rate by 15%.

A matter of argument, the establishment of permitted size of blocks, led to intellectual wrestling aimed actually at bringing a protocol under control. It would be an error to consider the matter only from a technical point of view. Actually, behind the discussion there is a true drama of human ideals and relations. It will be not easy to find a solution of the problem. It is known that major players are from China, so cultural and ideological differences between two radically different standards of thinking and way of life influence the dispute.

Actions of Bitcoin Classic that released a new version of the cryptocurrency’s basic software resulted in a new wave of strain. Coinbase also has a finger in the pie. All tandem’s actions are targeted at seizure of control mechanisms from Bitcoin Core. 

Unauthorized actions led to disagreement between major players, who established a group Bitcoin Roundtable for protecting Bitcoin Core. The camp of opponents was distorted from the beginning of intellectual opposition. Mining company HaoBTC severed itself from the camp of reformers.
Extraction of the peering currency is carried out through mining, while processing of transactions is based on principles of trust and harmony that allow getting rid of mediatory services. An institute of “collective mediation” was implemented by means of miners who provide system with free computing power of their PCs worldwide.

Representatives of two warring parties may achieve success by gaining support of the majority of miners, with 2/3 of them located in China.
 Supporters of neutrality announce the growth of debates between representatives of Chinese and Western sides. In this regard, rather interesting is the opinion of Bobby Lee, the head of the large Bitcoin exchange ВТСС. A businessman educated in the USA, lives in Shanghai and rather often assists as an interpreter and a messenger in discussions between colleagues.

Literary expression of the businessman, who compared the current situation with being at the right angle, shouldn’t make you confused. He can see all perpendicularity of forthcoming battles and predict specific scenarios.
Representatives of the English-speaking camp highlight two major points in debates:

• Determination of control strategy.
• Reasonability of maintaining a decentralized mechanism.

Supporters of maintaining the block size united under the banner of Bitcoin Core in order to involve even smaller-scale miners into the discussion. Some representatives of this camp work on the development of alternative variants, for example, Segregated Witness software that processes maximum number of money transactions in the shortest possible time.
Their opponents led by Bitcoin Classic insist on increasing the block size twofold and explain this necessity with rapid growth of number of transactions. In their opinion, maintaining the standard block-size will lead to the increase of commission values.
According to Lee, Chinese players are not interested in these problems. They continue their work routine. Chinese miners can be divided into 5 main groups:

• ASIC manufacturers (an analogue of Intel).
• Constructors of equipment, similar to Dell.
• Operators of large mining data-centers.
• Pool operators who collect fragmented capacities.
• Equipment owners who consider their equipment as a profitable investment in a long run.

Chinese residents are not used to polarity; they got used to live under the wing of a single political authority. They support decentralization principles and consider as appropriate only Bitcoin’s decentralization. Bitcoin Core can bank upon support of China only in case of maintaining initial principles of the cryptocurrency.   
You have to be born in China to understand the philosophy according to which an initiator of an innovation always becomes a whipping boy. It’s better not to stand out of the crowd.

Position of Jack Liao, СЕО of two giants Bitexchenge and LightningASIC, represents the opinion of the majority of Chinese players. They are too busy for debates and consider existing standards as advantageous enough.
A famous manufacturer of mining equipment, Bitmain, joined the camp of Bitcoin Core; however, he is not against increasing the block-size and considers it as a prerequisite for maintaining and promoting Bitcoin progress in the global scale.
Johns Lyau, a bilingual member of Chinese-English Bitcoin society, has similar to Lee views. He highlights negligence of Chinese residents and their estrangement from decentralization principles in general. Chinese residents and representatives of business society willingly invest in projects supported by the government considering the will of the authorities as a guarantee of innovation’s success.

Yankees are more adventurous, sometimes even extravagant. They are a way too far from pragmatic Chinese people. Freethinking that brings chaos into established standards they level with incest. Urge towards quick profit even with the risk to the core capital is a part of their character. Americans do not understand why the Chinese think about earning more money after work instead of taking rest.

An advantageous plan of Bitcoin Classic (some people consider it as innovative) has a chance for success if 75,1% from a thousand of consecutive blocks will support it.

Voting of miners required for implementation of innovations is a non-admitted institution in China. As a rule, leaders, fathers of the nation, make all decisions. At present, in the sector of cryptocurrency development this role is held by Bitcoin Core. The most important for them is a steady growth of the Bitcoin rate.
Adam Back, a famous cryptographer and one of the founders of Blockstream, encourages keeping in mind the value of consensus. In his opinion, Asian conservatism is a reliable stronghold for the cryptocurrency. Politically loaded fiat money is a bright example of inexpedience of implementing innovations without a thorough analysis of consequences.
The unique ecosystem has no parallels. Due to its amazing perfection and unique flexibility it is capable of replacing gold and getting a main reserve currency in the global scale.

People worldwide had enough of mocking attitude imposed by political authorities and vicious financial system. Stability and harmony ensure steady growth of the cryptocurrency that doesn’t need any imprudent experiments.

Advantages and success of Chinese point of view on Bitcoin looks more attractive in the background of disagreement in the western camp, which is likely to be defeated due to outer confusion.