Trump Administration Fears China’s Crypto Mining Dominance, Is XRP a Better Trade Off?
Trump’s White House Might Be Looking into Ripple to Mitigate China Mining Dominance
The Donald Trump administration has been known for its volatility, especially when it comes to matters of global finance. Recent efforts of Trump to escalate the continuing trade war with China have been worrying to the international community, to say the least. As the tariff war gets worse with each passing day, the world holds its breath as it waits to see who might emerge on top in this proverbial battle of wills.
Cryptocurrency and the crypto space has never been immune to the competitive nature of the economic battle being fought between the United States and China. In fact, the latest facet of what appears to be a unified strategy from the white House to combat Chinese dominance expressly involves an attempt to combat the Chinese domination of the growing mining sector.
The Trump administration recently changed the definition of mining hardware slightly in an attempt to include “data processing machines,” which is a much wider breadth for classification including a wide range of different cryptocurrency mining machines. This move was incredibly problematic for China, who holds one of the most prosperous mining equipment production companies on the planet, Bitmain. Bitmain actually makes most of their profit off of international sales, with exports to foreign countries like the United States comprising around 51% of their overall sales.
Especially hard-hit by the new regulations and increased tariffs have been the advanced ASIC miners, which analysts fear may become nearly unprofitable for Chinese producers if the current trends by the Trump administration continue.
XRP A Potential Solution
According to Ripple officials, the White House has turned its sights on XRP as a potential way to combat Chinese dominance over the crypto mining market. Cory Johnson elaborated in a Breaker Magazine interview that Trump’s White House has been looking into the potential impacts of China’s increasing dominance on the overall market, as well as the place of the United States in the growing industry.
XRP could be a solution to the problem of Bitcoin mining dominance, according to white House officials. Instead of trying to surpass the monstrous domination of the market exerted by China and its Bitcoin mining manufacturing organizations, American officials could try to attempt to establish their own dominance in the XRP market.
Ripple Dominance Explained
Experts warn that exerting power over the XRP industry would be very different than having power in the Bitcoin and Ethereum mining industry. For the latter, the profit would come from the use and sale of the machines. But when the centralized Ripple is the subject of dominance, access to the market would require a substantive embrace of the technology in the banking infrastructure of the existing United States financial system.
For Ripple XRP, this would mean big things. United States federal interest in the development and expansion of Ripple to banks all over the world would put both the US on the forefront of the technology’s development and Ripple on the edge of a massive breakthrough to untouched markets.
Until then, though, it is unclear whether the Trump administration is going to be able to challenge the market dominance of China in the modern era of crypto mining.