The extensive tariffs of Trump administration could have been the American demand for the Bitcoins mining platforms that would benefit mining operations outside this country, because producers will look outside the USA to sell surplus inventory, says the general director of Hashlabs Mining, Jaran Mellerud.
“With the increase in the prices of machines in the USA, they can paradoxically decrease in the rest of the world,” Mellerud he said In the report of April 8. “The demand for shipping machines to the US is to fall, probably approaching zero.”
“Producers will receive a surplus of shares originally intended for the American market. To relieve this surplus, they will probably have to lower prices to attract buyers in other regions,” he added.
Melleud said that the falling prices of mining platforms can escalate and take a larger piece of total Bitcoin hashrat.
Source: JARAN MELLEROD
US President Donald Trump presented the “mutual tariffs” of his administration on almost every country on April 2. Some of the largest manufacturers of cryptocurrency machine mining are based in countries the most tough tariffs, including Thailand, Indonesia and Malaysia, in which the tariffs are 36%, 32%and 24%.
Bitmain, Microbt and Canan, producers of the mining platform, moved to some of these countries to get around the 25% tariff, which Trump imposed on China in 2018 during the last administration.
Annual change of tariffs in the USA to China, Indonesia, Malaysia and Thailand since 2017. Source: Mining Hashlabs
Mellerud noticed that Trump’s last tariffs would mean a mining platform, which initially costs 1000 USD, would value at USD 1240 in the USA.
“Meanwhile, there are no tariffs in Finland and most other countries, so the cost of the machine in the amount of USD 1000 remains unchanged.”
“In the industry just as sensitive to costs as bitcoin mining, 22% price increase on machines can make the activity financially unbalanced,” he added.
No return from Trump’s tariffs – “the damage is caused”
Mellerud believes that the future reversal of Trump’s administration tariffs will not restore the trust of American mining operators.
“Even if these tariffs are withdrawn within a few months, the damage will be caused-the landing for long-term planning has been shocked,” said Mellerud. “Few will feel comfortable by making serious investments when critical variables can change from day to day.”
He said that American miners felt calmed down when Trump returned to the White House, expecting a more stable regulatory environment.
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“But now they are experiencing the opposite side of his unpredictable political changes,” said Mellerud.
The USA accounts for almost 40% of the network hashrat. Mellerud said that there is no reason for American miners to disconnect their machines and does not expect that the total Hashrate Bitcoins from the US will fall.
However, the path to expansion is now “steep and uncertain,” he said, as a result of which the US could lose a significant part of Hashrat.
Trump’s tariffs have shocked almost every market, including cryptocurrency and Bitcoin (BTC) markets, which have dropped by 4% in the last 24 hours to 76 470 USD, Coingcko data can be seen.
Bitcoin is now a 30% discount to the highest level of USD 108,786, which he set on January 20-the same day on which Trump re-entered the White House.
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