Trump won’t keep his promise on cryptocurrencies because of Russian miners – Bloomberg

In June, Trump said on his TruthSocial social media page that Bitcoin mining would be the “last line of defense” against central bank digital currencies and allow the United States to “dominate energy.”

However, as Bloomberg writes, it was the economic sanctions imposed by the United States, as well as rising inflation, that led to the fact that miners outside the United States began to increase their cryptocurrency production volumes.

Demand for mining equipment is actively growing in countries in Eastern Europe, Asia, Africa and the Middle East, Taras Kulyk, director of Synteq Digital, a company specializing in the sale of Bitcoin mining equipment, told Bloomberg. According to the senior manager, the relaxation of the position of the Russian authorities regarding cryptocurrencies is stimulating the reactivation of mining in the country.

According to Bloomberg, another argument against Trump’s campaign promise is that American mining companies themselves have begun to expand abroad due to rising electricity costs in some states. For example, MARA Holdings Inc., the largest mining company by market capitalization, announced plans to create a joint venture with the UAE’s sovereign wealth fund. The goal is to organize one of the largest mining farms in the Middle East.

Additionally, as the agency writes, the US trade war with China will likely lead to an increase in the cost of Bitcoin mining equipment, a significant part of which is produced by the Chinese company Bitmain. Such equipment is one of the two main expenses of miners, in addition to electricity, Bloomberg clarifies.