Trump-Endorsed Bitcoin Power Play Attacks China's BTC Mining Supremacy
Beijing-based Bitmain Technologies has dominated Bitcoin mining for years, commanding 90% of the worldwide market for specialized computers that power the cryptocurrency's decentralized network.
Bloomberg writes that Bitmain's rule is facing a “unprecedented threat” from escalating political tensions and the possibility of a Trump presidential return.
Changing US Bitcoin Mining Landscape Trump altered his mind on crypto throughout his first term. Now, the former president wants Bitcoin “mined, minted and made” in the US and suggests a Bitcoin Reserve, calling Bitmain's dominance a national security danger.
This rhetoric and fears that Bitmain's technology may be exploited for spying have allowed Bitmain's developing competitors to advance.
Rajiv Khemani, CEO of California firm Auradine and a Bitmain rival, told Bloomberg that the former president may wish to confront a single dominating Chinese mining business for national security grounds.
After China's crackdown, Bitcoin mining moved to the US, raising questions about who's mining and where the gear comes from.
US Miners Choose Domestic Options President Joe Biden ordered MineOne, a Chinese mining corporation, to leave and sell a Wyoming site in May due to “foreign-sourced equipment” that may permit “surveillance and espionage activities.”
Although the government has not shown Bitmain's rigs were used for spying, the political backdrop has allowed Bitmain's competitors to benefit.
California-based Auradine raised $80 million in April and shipped its first mining devices in late July. Marathon Digital Holdings, Bitmain's biggest customer, is a stakeholder.
After Price Suppression Rumors, Crypto Founder Calls For Ethereum Foundation Dissolution In July, Texas-based Core Scientific announced an order from Jack Dorsey's Block, despite Bitmain being one of its largest investors.
