Could Ripple be the U.S. answer to China’s Bitcoin mining monopoly?

If you like what you read, feel free to share it:

China controls almost 80% of the Bitcoin mining and the majority of Ethereum mining today. That is a huge share if we look at it globally. And of course, it generates a competition between the strongest players in the world. China and the U.S. have been competing in trade wars since Donald Trump won the election. And now that is the direction that Ripple is looking. They have been in close contact with the White House and the Trump administration. Cory Johnson, Ripple’s chief marketing strategist, an ex-journalist had an interview with BREAKER magazine last week where he shared some inside information on the Ripple situation. He tried on dispelling the centralization rumor by saying that Ripple controls only 10 of 150 XRP validators, but didn’t provide any factual proof, and he confirmed that Ripple owns 60% of the coin supply. He says that because Ripple has created a cryptographic lock they cannot go and sell it all into the market. Johnson explained that Ripple has quarterly letters where they announce exactly how much have they sold and how that affects the value. 

Continuing on with questions about the White House, Johnson said that he was very surprised about the amount of knowledge that the White House representatives had: “When I started to meet with people in government and regulators, I had very low expectations. I have been truly amazed at the open-mindedness, number one. And number two, the smart questions, sometimes even tough questions. There’s clearly a lot of homework going on.”

Although it is not clear how the U.S. could be using Ripple in regards to a foreign control competition aspect, but one thing is clear – the U.S. White House administration is aware of the global cryptocurrency situation and they seem to think that Ripple could be the answer.

Johnson revealed that Ripple meets up with government regulators and politicians regularly, so we could be expecting a major Ripple implementation soon. Or on the other hand, the government is just starting to test various cryptocurrencies and seeks for a better use case. As he mentioned in the interview:

“I don’t know that the SEC wants to be in a position to have to comment on every single cryptocurrency or digital asset created and issue a ruling about it. I don’t know if they like what they did with bitcoin and Ether. I would guess that an administrative agency doesn’t want to take on regulating an entirely new part of the world when no one’s asked them to do it, and no one’s going to raise their budget for doing it.”

Could the future of the global crypto-situation turn out to be a competition between foreign affairs? Not so much, because China isn’t showing much appreciation towards Bitcoin and cryptocurrency mining. Having banned exchanges and ICOs in general, now they are looking towards mining farms, and the electricity they are using. That is the reason why most of the mining farms are expanding their headquarters to other countries like Canada and the U.S. China has a very low electricity price and in some places even free, so it is obvious why the country controls almost 80% of mining, but what is not clear is why China is pushing cryptocurrencies away from their domestic area? Are they just making it look that way? Could it be that China isn’t aware of the Bitcoin power they have? 

Source:

https://goo.gl/6GpcTF
https://goo.gl/iEvhjp

Photo by Canva.com