Former President Donald Trump called for Bitcoin to be 'mined, minted, and made' in the United States, which could challenge the dominance of China-based Bitmain Technologies Ltd.
Background of the Conflict
Bitmain, a leading manufacturer of Bitcoin mining equipment, currently controls an estimated 90% of the global market for mining rigs. However, increasing U.S.-China tensions may lead to more competition from American firms.
Diversifying Supply Chains
According to Trump, some U.S.-based companies have started to diversify their supply chains, taking advantage of the current geopolitical climate. This shift is driven by concerns that relying on Chinese-made equipment could pose national security risks, especially given the strained relations between the two countries.
Market Implications
Bitmain’s influence in the Bitcoin mining industry has often been compared to De Beers’ historic control over the diamond market, where it could influence global prices by adjusting production levels. Rising competition from U.S. firms could create additional pressure on Bitmain.
Trump's push for U.S. Bitcoin mining could lead to significant changes in the global cryptocurrency industry and decrease the dominance of Chinese firms in this area.
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