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“Bitcoin mining has shifted from China to the US, in part on the back of Elon Musk’s efforts” — Paul Ebeling
The shift could be explained by several geopolitical patterns that have been happening over the last few yrs.
One of them is that that China, through receptive of blockchain as a disruptive technology, does not allow the trading of digital assets. Trading cryptocurrencies is illegal in the country.
Cryptocurrency exchanges have not been operating in mainland China since September 2017.
The situation got worse recently when there were speculations of the Chinese government banning Bitcoin mining because of environmental concerns and accompanying capital restrictions. Administrators of inner Mongolia have banned Bitcoin mining, citing pollution.
Capital restrictions were because, for the 1st time in more than 25 yrs, the Chinese economy tapered in 1-H of Y 2020. This skepticism caused a massive outflow as investors dumped the RMB Yuan, forcing the Buck higher.
As part of capital controls, there were concerted efforts to prevent the sale of BTC—mostly from BTC mining operations, to indirectly steady the RMB Yuan.
That plus a de-dollarization campaign from Russia and Iran has spurred Bitcoin mining activity, especially in Iran.
However, the fundamental shift is the level of institutionalization and subsequent financing of Bitcoin mining spearheaded by crypto-focused funds in the US angling to tap the abundance of renewables.
Enter Bitcoin evangelist Elon Musk, a few well placed comments and Bitcoin mining has shifted from China to the US and running efficiently on inexpensive burn off nat gas.
The market
Nonw names like bitcoin (BTC-USD), dogecoin (DOGE-USD), ethereum (ETH-USD), and litecoin (LITE-USD) are entrenching themselves in the financial and cultural lexicon.
However most Americans are not ready to buy crypto, a new poll suggests.
A YouGov survey of 1,715 US adults, conducted exclusively for YahooFinance, found that 89% of respondents had heard of bitcoin and a clear majority (57%) of those who were aware would not invest in any cryptocurrency. The poll, conducted 13-15 July 2021, had a margin of error of ±2.7%.)
Of the respondents who had heard of bitcoin, 13% said they personally owned cryptocurrency and 27% said they would consider investing in cryptocurrency. Another 16% were unsure whether they would ever consider buying in.
Bitcoin, in particular, is seeing a growing number of adopters among companies big and small. Marquee names like Goldman Sachs (GS) and JPMorgan Chase (JPM) are dabbling in bitcoin in various ways, and Amazon (AMZN) is reportedly toying with accepting crypto payments speculation that sent digital coins on a up Monday.
In theory, the rise of digital transactionsshould make it easier for consumers to shift toward crypto.
A Key arguments in favor of cryptocurrency is that a combination of super-accommodative central bank liquidity and runaway government outlays are feeding surging inflation, thereby hastening the decline of paper (fiat) money.
Bitcoin’s most vocal evangelists have argued that digital currencies are the only plausible alternative.
! declared, “If we fix the money, we have a chance to fix the world. We can lift billions of people out of poverty. We can return to free markets where everyone has an opportunity to build a life of wealth, happiness, and freedom. That is what most people want — to simply build a better life for themselves and their families.”
Have a healthy day, Keep the Faith!
