This is infeasible. All transactions have an origin and a destination address. To transfer bitcoins out of the origin address you need to know the private key for that address. If you don't have that private key, it'd take thousands of years to guess it, even if you had the combined computing power of every computer on Earth.
Due to asymmetric cryptography, it's very easy for anyone to verify whether or not a transaction is legitimate.
verifying it by majority consensus
The whole system is designed in such a way that you can't just make up transactions and verify fake ones. Those blocks would immediately be rejected as invalid by everyone else.
The whole verification by consensus happens when 2 different miners solve the same block at about the same time. The blockchain forks and whichever side of the fork grows larger in a shorter amount of time becomes the accepted path, and the other side fades away as if it never happened.
But each block must be filled with valid transactions for it to be considered legitimate.
The whole system is designed in such a way that you can't just make up transactions and verify fake ones. Those blocks would immediately be rejected as invalid by everyone else.
Which only matters if "everyone else" is the majority. In this case, "everyone else" is the minority if China's bitcoin investment is coordinated. It's called the "Byzantine Generals Problem" and is the basis for all validation on a P2P network. It is not impervious to attacks, and China is situated pretty well to be able to carry it out.
Either way, just as there is no guarantee of security, there is also no guarantee of threat, and everyone is free to put their money wherever they like.
If China decides to start making fake blocks, they don't suddenly get the ability to steal Bitcoin, nor do they get the ability to deny Bitcoin transactions for others. Everyone else will immediately notice that some (or even most) miners are dishonest and ignore them.
This is infeasible. All transactions have an origin and a destination address. To transfer bitcoins out of the origin address you need to know the private key for that address. If you don't have that private key, it'd take thousands of years to guess it, even if you had the combined computing power of every computer on Earth.
Due to asymmetric cryptography, it's very easy for anyone to verify whether or not a transaction is legitimate.
The whole system is designed in such a way that you can't just make up transactions and verify fake ones. Those blocks would immediately be rejected as invalid by everyone else.
The whole verification by consensus happens when 2 different miners solve the same block at about the same time. The blockchain forks and whichever side of the fork grows larger in a shorter amount of time becomes the accepted path, and the other side fades away as if it never happened.
But each block must be filled with valid transactions for it to be considered legitimate.
Which only matters if "everyone else" is the majority. In this case, "everyone else" is the minority if China's bitcoin investment is coordinated. It's called the "Byzantine Generals Problem" and is the basis for all validation on a P2P network. It is not impervious to attacks, and China is situated pretty well to be able to carry it out.
Either way, just as there is no guarantee of security, there is also no guarantee of threat, and everyone is free to put their money wherever they like.
Right, and I'm telling you that the novel concept in Bitcoin is solving the Byzantine Generals Problem.
If China decides to start making fake blocks, they don't suddenly get the ability to steal Bitcoin, nor do they get the ability to deny Bitcoin transactions for others. Everyone else will immediately notice that some (or even most) miners are dishonest and ignore them.