According to the crypto mining firm MARA, the USA ought to do extra to preserve their management in Bitcoin mining.
With an extended article revealed yesterday on their official X profile, they clarify why they imagine that the USA is at risk of dropping this management.
The management of the USA according to MARA mining
According to the “mining map” by Chain Bulletin, the USA at the moment maintain about 38% of the total world hashrate of Bitcoin.
In second place, after the ban of 2021 which in principle continues to be ongoing, there can be China, with 21%. In third place, Kazakhstan with 13%.
No different state holds greater than 10%, with Canada fourth at 6%, and Russia fifth under 5%.
It would appear like a powerful and consolidated management, however according to MARA it isn’t so.
The dangers for the USA
In her lengthy article yesterday, MARA explains that the USA is going through an pressing want to shield its financial pursuits and nationwide safety.
To inform the reality, this assertion appears a bit too in keeping with the electoral propaganda of Trump, simply as a second assertion that the world is witnessing a big development in direction of de-dollarization appears a bit too in keeping with pro-Chinese and pro-Russian propaganda.
Therefore, it’s advisable to take with a grain of salt what the firm declares, which furthermore is listed on the Nasdaq inventory exchange the place it isn’t exhibiting significantly vital performances on this 2024.
The solely actual risk that clearly emerges from MARA’s reasoning is the one associated to the buy of BTC to maintain as a strategic reserve.
They write that speculations are rising about nations constructing reserves in Bitcoin, and this corresponds to what has been rising for a couple of weeks now from the information coming from round the world.
They add:
“Before the imminent Trump administration, the United States must move quickly to secure dominant positions in bitcoin and Bitcoin mining”.
The dominant place of the USA
Currently, the USA already has a dominant place globally each for the possession of BTC amongst the states and in Bitcoin mining.
The situation raised by MARA is that it isn’t sure that such a place will stay dominant, though to be trustworthy with the Trump administration it may consolidate and even strengthen.
However, whereas the USA holds greater than 200,000 BTC, which with Trump needs to be stored as a strategic reserve, China holds about 190,000, which, nonetheless, doesn’t appear that they are going to be stored as a reserve.
Furthermore, after the 2021 ban, China moved from first to second place for world hashrate in Bitcoin mining.
While on one hand it appears unlikely at present that the giant Asian nation may resolve to maintain its BTC as a reserve, it appears a lot much less unlikely that it’d resolve to elevate the ban, which doesn’t work anyway, and check out to grow to be a pacesetter in Bitcoin mining once more.
The requests of MARA on the crypto mining sector in the USA
In this regard, MARA explicitly asks not just for a strategic reserve in Bitcoin to be created in the USA, however above all for the nation to spend money on nationwide Bitcoin mining.
However, that is clearly a request that isn’t disinterested, and if contextualized inside the present state of affairs, it seems even much less so.
In April, there was the fourth halving of Bitcoin, which successfully halved the BTC earnings of miners, together with MARA.
In reality, whereas the value of Bitcoin in November recorded a brand new all-time excessive 35% greater than that of March, the value of MARA shares on the inventory exchange in November recorded a peak decrease than that of February. Furthermore, it’s nonetheless at -70% from the highs of late 2021.
Indeed, the present value of about $25 is in keeping with that of April 2022 and January 2021, which exhibits that buyers are a lot much less thinking about MARA shares than in Bitcoin, regardless of the indisputable fact that the firm primarily does nothing however mine BTC.
Furthermore, at the finish of the article, they explicitly invite readers to contact their Government Affairs and Corporate Social Responsibility crew through e mail, nearly as if inviting the US authorities to contact them.
The reserves in Bitcoin
That mentioned, the reasoning about the strategic reserves of the States in BTC appears to make sense.
The reality is that BTC are restricted, as a result of at the moment there are nearly 19.8 million, however there can by no means be greater than 21 million.
This signifies that if the States begin to hoard them, the ones accessible on the public markets will essentially lower.
A Bitcoin is divisible up to 100 million components (100 millionth of a BTC known as a Satoshi), however any discount in provide on the markets may simply lead to a rise in value, and due to this fact the prices for many who need to buy them.
In gentle of this, MARA is correct to warn that in the future there is likely to be fewer good moments to purchase BTC at an excellent value, and due to this fact it’s advisable for States to start thinking about as quickly as potential whether or not it’s worthwhile to create a strategic reserve in Bitcoin, maybe alongside these in gold.
