Countries fight for global dominance with cryptocurrency
The US battles with China for the mining of bitcoins and Ripple XRP.
The US and China have been in a battle for some time now, because of the competition with each other in almost every field to gain world dominance. This competitiveness has moved to the cryptocurrency industry, this is according to reports that China has been set on Bitcoin dominance and is now in favor of Ripple’s XRP with Ripple Labs.
China has been one of leading countries when it comes to bitcoin mining, as the Chinese mining pools have been in control of more than 70% of the Bitcoin network collective hash rate. There have been many that think that this has given the country too much control over the mining operations of bitcoin. Most of these mining equipments are still made by Beijing-based Bitmain Technologies mining facilities, which is responsible for more than half of the bitcoin creations.
The United States wants to increase its dominance in the bitcoin mining race. This was according to recent reports coming from the White House that the US president Donald Trump is also worried about the fact that China currently has more dominance over bitcoin mining and therefore is more interested in Ripple Labs (XRP) adoption than bitcoin in order to offsets China strength in bitcoin mining.
The Chief strategist at Ripple Lab’s, Cory Johnson, has mentioned in an interview with crypto-focused magazine breaker that:
“The White House, in particular, seems to be thinking about what it means to have 80% of bitcoin mining taking place in China and a majority of ether mining taking place in China. When you look at XRP, there is no mining, so from a foreign-control aspect or from an environmental aspect, XRP is a very different beast. And in conversations we’ve had with the administration, they seem to get that and think that might matter.”
Great opportunities are within bitcoin mining
China is currently manufacturing most of the worlds bitcoins and other cryptocurrency mining equipment and the mining farms are massively supported by the country’s cheap electricity prices. In return, this has given China dominance over bitcoin as well as Ripple’s XRP controlling more than 60% of the non-mineable XRP tokens.
This kind of dominance over these cryptocurrencies has received a lot of criticism from the industry as it appears to be more centralized than most people agree. However, this can intensify the centralization issues or this will make more people put attention to the processes going on and shift the focus to more decentralization of these crypto assets.
Decentralization is a constant moving phenomenon as it far outweighs the benefits of centralization, but this can take time to unfold as the global financial system is changing to a more robust way of value creation and value transacting. Watching how these two countries will play out their moves in order to gain supremacy over the crypto mining industry is exciting, as this becomes a battle between Decentralization and Centralization.
What are your thoughts on what is happing in mining facilities around the world? Feel free to leave a comment down below.
