For a long time, Bitmain, a Chinese miner company, has had a tight grip on the Bitcoin mining market. They own about 90% of it, practically running the show.
But now, with Donald Trump making noise about Bitcoin being “mined, minted, and made” in the U.S., that could all change. And it’s got people wondering if Bitmain’s time at the top might be over.
Bitmain is like the De Beers of Bitcoin mining. They control the supply of mining rigs, those high-powered machines that solve complex puzzles to keep the blockchain running and earn some Bitcoin in the process.
They’re so dominant that they can change the game just by tweaking how many machines they produce. The political tension isn’t doing Bitmain any favors either. Trump’s anti-China stance is pushing American companies to think twice about relying on Chinese tech.
The U.S. is already the biggest hub for Bitcoin mining, and having Chinese-made equipment doing most of the work? It’s making some folks nervous.
We’re already seeing moves in the market. Core Scientific, a big Bitcoin miner out of Texas, recently placed an order with a unit of Jack Dorsey’s Block Inc., despite Bitmain being one of their major investors.
Meanwhile, Auradine isn’t wasting any time. They raised $80 million in funding back in April and shipped their first batch of mining rigs in July. Marathon Digital, another major player in the mining game and one of Bitmain’s top clients, is also backing Auradine.
Let’s be real. Bitcoin mining is a brutal business. You need the best hardware and cheap electricity to make it work. Think of mining rigs like souped-up engines built to churn out guesses at impossible math problems.
The faster and more efficient your gear, the more Bitcoin you can mine. These rigs are power-hungry beasts, gobbling up around 0.6% of the world’s electricity. It’s a costly game, and having the best gear can make all the difference.
Bitmain has stayed on top because they keep rolling out newer, better machines. Fred Thiel, the CEO of Marathon Digital, said it best: “When they launch a new machine, it resets the competitive dynamic.” If you’re the first to get your hands on their latest rig, you’ve got an edge.
But all that could be up in the air if Trump’s plans start to take shape. His 2018 tariffs on Chinese goods pushed Bitmain to move some production out of China to Southeast Asia, but they still don’t have a significant U.S. manufacturing base.
If Trump starts pushing more anti-China policies, Bitmain could find itself locked out of the American market entirely.
Source: https://www.cryptopolitan.com/us-bitcoin-mining-threatens-china-dominance/