US Bitcoin Mining Industry Set to Benefit from Trump’s Trade War with China
A Boon for US Mining Rig Manufacturers
US President Donald Trump’s trade war with China and efforts to ramp up on-shore Bitcoin mining shall be a major boost for US mining rig manufacturers. Despite the US accounting for over 40% of the Bitcoin network’s global hashrate, the country still relies heavily on China-made mining rigs. China-based Bitmain reportedly holds a 90% market share within the Bitcoin mining manufacturing market.
A Need to Address US Reliance on Foreign Technology
"A Trump’s continued focus to support the US BTC mining industry highlights the urgent need to handle US reliance on foreign technology," said Sanjay Gupta, chief strategy officer at Auradine, in a recent interview with Cointelegraph.
Supply Chain Disruptions
US Bitcoin firms faced a serious supply problem last 12 months, with hundreds of Bitcoin miners held at ports of entry by the US Customs and Border Protection. One of the firms affected believed it was because of a mistaken belief that the chips were illegally imported Chinese radio frequency devices. It took months for the chips to be released. Gupta also noted that US-China trade tensions have disrupted the flow of foreign Bitcoin miners, leading to provide chain disruptions and delays.
The Challenge of Competing with China
The US was already competing with China to win the high-end chip manufacturing market, however the recent trade tensions have "intensified" these challenges for US-based crypto miners, Gupta said. China-based Bitmain expanded its production line into the US in December to enhance supply chain efficiency, further solidifying its position available in the market.
Auradine’s New Teraflux AH3880 Miner
Auradine recently launched its latest Teraflux AH3880 hydro-cooled Bitcoin miner, competing with the likes of Bitmain, MicroBT, and Canaan. Gupta believes that a "dramatic increase in demand" for electricity will put "an amazing deal of pressure on the electrical grid," making it more essential for Bitcoin miners to operate off-grid. This, in turn, could create a major demand for Auradine’s latest miner.
The Risks of Increased Demand
When asked whether an extra uptick in Bitcoin mining activity within the US could hurt Bitcoin decentralization, Gupta said that securing the Bitcoin network with more energy-efficient solutions within the US could be a "net positive" for Bitcoin, but there may very well be risks if the rise outpaces technology in sustainability and decentralization.
Conclusion
In conclusion, the US Bitcoin mining industry is poised to learn from Trump’s trade war with China and efforts to ramp up on-shore mining. US mining rig manufacturers, similar to Auradine, are well-positioned to capitalize on this trend, which could lead on to a major shift in the worldwide Bitcoin mining landscape. However, it’s crucial that the industry prioritizes sustainability and decentralization to make sure the long-term health of the Bitcoin network.
