- Trump has set his sights on China as the global crypto competition intensifies.
- China may reenter the crypto space due to its advantages in hardware and electricity.
Former President Donald Trump, never one to shy away from controversy, after taking a jab at El Salvador, has now shifted his focus to China.
Trump’s election approach
As the 2024 presidential election approaches, it’s clear that crypto has become a hot topic.
Trump is embracing this trend, aiming to position himself as the “crypto president” and bringing digital assets to the forefront of the geopolitical conversation.
Remarking on the same, Trump, in a recent interview with Bloomberg said,
“If we don’t do it, China is going to pick it up and China’s going to have it—or somebody else, but most likely China.”
He further revealed that his experience with the “Mugshot” NFT Collection opened his eyes to cryptocurrencies, noting that a significant portion of the proceeds was paid in crypto.
He emphasized the importance of maintaining U.S. leadership in the crypto space and warned against other countries, like China, taking over.
Could China be the leader in the crypto space?
Recently, Senator Cynthia Lummis published a report challenging the Biden administration’s suggested 30% excise tax on the energy used by Bitcoin [BTC] miners.
She, too, added how China, which had once banned crypto trading and Bitcoin mining in 2021, might be interested in reentering these markets,
“If America fails to create a supportive and stable environment for Bitcoin mining, we… may find ourselves playing catch-up in a race we once had every opportunity to lead.”
Why only China?
The reason China has the potential to outpace the US is because it has access to cheap hardware and low-cost electricity in specific regions.
Thus, if the Chinese government decides to offer incentives or ease current restrictions, it is possible for China to reestablish a significant presence in the global crypto industry.
This raises a critical question: Can any single country truly control decentralized assets like Bitcoin and Ether?
Daniel Lacalle, chief economist of Tressis put it well when he exclaimed,
“There is no such thing as nationalist crypto. The beauty of the crypto market is that it is completely diversified and decentralized. The concept of government control of crypto makes no sense to anyone that understands independent currencies.”