Crypto assets continue to dominate headlines and spark controversy as the 2024 presidential race continues to escalate and intensify. In addition to applicants rushing to turn to and embrace the crypto industry, former President Trump is accepting crypto contributions and the recent White House overtures to Biden. Industry: Legislative efforts have accelerated. Congress, after years of inaction and deferring virtually all decisions to U. S. regulators like the IRS and SEC, has acted in a bipartisan manner to try to address the issues facing the crypto asset industry. These efforts continue, even in the face of the White House’s veto of an attempt to repeal SAB 121 that has drawn bipartisan parties in both houses of Congress.
However, in June 2024, the efforts and openings made to the crypto asset sector took another dramatic turn. In comments made and after his meeting with major Bitcoin mining organizations located in the United States, former President Trump stated his preference for all the others. Bitcoin will be mined in the United States. The most recent in a series of quick comments and pivots to a more pro-crypto stance The former president’s crypto stance has raised questions about 1) whether such a purpose is even remotely possible, and 2) even if not, what the implications of such efforts might be.
Let’s take a look at some explicit tactics where increased interest and investment in Bitcoin mining in the United States can have a significant impact on the broader crypto market.
As interesting as it may seem to some to centralize mining (and, by extension, hashing and computation force it) in the United States, the likelihood of this happening is relatively low. According to a study conducted by 3iQ, the United States has lately had the highest hash rate of a single country at 38%. Achieving one hundred percent of the global hash rate is logistically impossible, given the globally decentralized nature of the Bitcoin blockchain, which is also a core asset of the crypto asset, as it enables it. not be under the control of a single government.
In addition, the United States has been the main beneficiary, in terms of hash rate, of China’s ban on cryptocurrency mining enacted in 2021. Coingecko’s studies indicate that the total source of Bitcoin (21 million) is expected to be mined throughout the year. 2140, meaning that about 90% of the source has been mined based on existing hash rates, cost, logistics, and the mining of all the rest of Bitcoin exclusively in the U. S. UU. es prohibitively expensive. That said, this is renewed (and positive) about Bitcoin mining. He would possibly gain advantages in U. S. policy decisions in other ways.
The verbal exchange and debate around the U. S. power gridThe U. S. has been controversial, and advocates of fossil fuels and renewable energy resources have found little common ground to conduct policy discussions. The broader focus on Bitcoin mining and crypto assets demands greater attention. Objective verbal exchange on U. S. energy infrastructure and policy.
Specifically, and with the purpose of expanding the percentage of hashing force available to U. S. miners, the U. S. is explicitly focused on expanding production and exports of force. The infrastructure spending that would result from this direction would come with increased fossil fuel production. , LNG terminals, expansion of existing renewable energy projects and, most likely, a slight increase in nuclear power plants. Combined, those efforts, through an ever-expanding source, would reduce the maximum vital load for miners (electricity) while allowing for a more objective and balanced basis for further diversification of the source of force and control of the grid in the United States.
While discussions about crypto assets continue to focus on Bitcoin’s progression and role in the market, the fact remains that the crypto sector has emerged far beyond Bitcoin-related issues. Stablecoins, products, and advertising through some of the world’s largest TradFi. Institutions, geographic regions that actively buy and build strategic reserves of Bitcoin, and the prospect of central bank virtual currencies (CBDCs) have all featured prominently in policy debates. However, while this is happening, it remains vital that policymakers scale up and discuss policies. measures that promote innovation while preserving investor privacy and protection.
By placing cryptocurrencies at the forefront of the 2024 presidential race, any of the applicants highlighted the vital role that those assets will play in the long run. Simply put, and especially when it comes to stablecoins, those tools will be the long-term state of how the dollar works. Transactions and invoices will take place, although in the United States, the media’s verbal exchange remains focused on Bitcoin and Bitcoin-related issues.
Regardless of how those conversations were framed, the discourse and research on the role cryptocurrencies will play is worth pursuing.
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