China is pumping money out of the US using Bitcoin.

China is pumping money out of the US using Bitcoin.
The Chinese authorities seem to be ordering rather than waging war on cryptocurrencies, seeking to further weaken the US economy.
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The United States is pumping billions of dollars into the Chinese economy every year without even suspecting it. The reason is that most bitcoin (BTC), mainly traded in US dollars around the world, is mined in China. There is as much as 65% of the mining capacity of all cryptocurrency mines.

To mine Bitcoin, powerful computers solve complex mathematical problems 24 hours a day, 365 days a year. Some of the newly mined coins go directly to cryptocurrency exchanges, while the rest can be stored in cryptocurrency miners’ wallets. Ultimately, however, the extracted BitCoins will be sold for dollars.

On average, 900 BTC are mined daily, and the total daily revenue from their sales is over $ 30 million (as at the end of June). That means miners made over $ 10,000,000,000 ($ 10 billion) in just one year!

With China’s share of cryptocurrency mines, local miners made around $ 7 billion since last summer.

If both Bitcoin’s price and popularity continue to grow, revenues will double or even triple each year. One way or another, money will circulate in the Chinese economy: it will be spent, saved or invested.

The Chinese government is well aware of the size and importance of investing in US dollars through cryptocurrencies. Despite the growing regulations and media hype, the authorities are unlikely to ban Bitcoin.

Currently, there is no indication that the situation on the BitCoin mining market will change dramatically. China will continue to dominate this market, and the United States must settle for second place, although soon this position may be threatened because just behind them, in third place in BitCoin mining is Russia, followed by Kazahstan.

23-07-2021, Mr Advice TEAM

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