The US administration might be interested in the confrontation between the token startup Ripple XRP and bitcoin as a means of combating a dominant position of China in Cryptoprotected. About it writes portal newsbtc.com.
The head of the Ripple, which is engaged in marketing strategies for startups, Cory Johnson (Cory Johnson) said the publication of Breaker Magazine that the White House is considering the implications of the dominant position of China in the mining market, which currently amounts to more than 80%.
The growing popularity of digital currencies in the US, both among users and among professional investors, it seems, has led to the fact that the administration of Donald trump (Donald Trump) found it necessary to explore their potential. Realizing that to break the hegemony of the Chinese mining companies will be difficult in the us administration suggest that you can try to arrange a kind of competition, in order to limit the spread of the leading capabality in the country.
“When I started to meet people from the government and regulatory agencies, I wasn’t expecting much. First, I was really amazed at the breadth of views. Secondly, smart questions, and sometimes tricky. There’s clearly done a lot of work. In the White House, in particular, probably thinking about what it means to have 80% of mining bitcoins, which is typical for China, most mining operations in the ether net, which is also about China,” said Johnson.
Note, Bitmain Technologies, which headquarters are located in Beijing, produces more than 50% of all bitcoins, with a maximum hash power has at its mining subsidiaries, including BTC.com, Hashnest and AntPool.
In turn, Ripple, on the one hand, controls 60% of its offer asset XRP, causing many activists on decentralization, convinced that the blockchain can start to manipulate the value of the token whenever you want.
On the other hand, XRP showed a better performance than his fellow cryptocurrencies, after a 70% collapse of the market in the beginning of the year. Coyne also helped to get the maximum profit in the trading session last month, when its rate increased from $0.28 to $0.60 cents.
“When you look at XRP, mining is not here, therefore, from the point of view of opportunities for foreign control or environment in which it operates, XRP is an entirely different beast. And in discussions with the administration, in which we have participated, they seem to have realized this and think it can have value,” explained Johnson.
However, while the White House and Ripple to discuss the dominance of China, the second economy in the world occupied the displacement of the mining companies from its jurisdiction.
Transactions in bitcoin have continued under the comprehensive prohibition of the administration of si Tsinpin. However, it is reported that the market is formally eliminated and the output from the competence of the people’s Bank of China (PBoC), still active — operations of mining are carried out in small cities throughout the country.
At the same time, PBoC clearly prefers to be “fully prepared”: recently it became known that the Bank has opened vacancies for professionals who have experience in cryptocurrency.
With regard to the potential effects of the celestial authorities, Ripple CEO brad Garlinghouse (Brad Garlinghouse) in June stated that bitcoin is controlled by China, offering to think about how many countries want to use such a currency. It is noteworthy that in August it became known about the preparation of the startup to the exit the Chinese market.
Also worth noting, according to the “official version”, announced in February, the White House spokesman, the US government will not regulate bitcoin in the near future.