Chinese Bitcoin Mining Firm Threatens Dominance as US Pushes “Made in America” ​​Mining

The Bitcoin mining, an important part of the world of cryptocurrency, is experiencing a big shift as only 1.19 million Bitcoins remain out of the total 21 million out of the mining with a value of around 74 billion dollars. The shortage is fueling geopolitical tensions, particularly with Trump calling for more bitcoin mining in the US and worries about Chinese-made mining being used for espionage.

The growing tension in Bitcoin mining

For years, Bitmain Technologies Ltd., a China-based company, controlled about 90% of the market for Bitcoin mining computers. This dominance is so great that it can affect global Bitcoin prices just by adjusting its production. However, the dominance of this Chinese company has been threatened by political changes, especially the return of Donald Trump to the White House.

At the Bitcoin Conference 2024, former President Donald Trump called for Bitcoin mining to be “mined, mined, and manufactured” in the U.S. The comments show a growing push to move Bitcoin mining away from Chinese control.

Following China's ban on Bitcoin mining, more mining operations have moved to the US, a shift that has raised concerns about the use of Chinese-made mining rigs. US officials are concerned that this device could be used for surveillance and espionage.

In May, President Biden ordered Min On, a Chinese company, to sell the property in Wyoming. This decision was made due to concerns that the device could be used for espionage. The move is part of a broader effort to limit China's role in key technologies.

Although there is no public evidence of actual spying, these fears have led them to follow strict regulations and inspect mining operations.

The challenges of Bitmain

Despite its past dominance, Bitmain is facing increasing challenges. The company has moved some of its production to Southeast Asia to avoid the impact of US tariffs. However, these efforts may not be enough to maintain the position as competitors begin to gain strength.

New players entered the scene

As political tensions rise, US companies are increasingly challenging Bitmain's dominance. For example, California-based startup Auradin recently entered the market with new mining machines. Oradin, which raised $80 million earlier this year, is now getting attention from major investors.

Similarly, Texas-based Core Scientific Inc. has placed large orders for mining, although Bitmain is one of its biggest investors.

What's Next for Bitcoin Mining?

As the US moves to further regulate bitcoin mining, the industry could see significant changes. Bitmain's rigs are currently considered the gold standard of efficiency and performance.

However, American companies must innovate and develop new options to meet the growing demand for American-made mining equipment.

Also read: What is hyperbitcoinization? How to increase the value of Bitcoin to 10 million dollars?