The radical prices of the Trump administration could collapse the American demand for Bitcoin operating platforms, which would benefit mining operations outside the country, because manufacturers will seek outside the United States to sell their excess inventory for cheaper, explains the CEO of Hashlabs Mining Jaran Mellerud.
“As machines prices are increasing in the United States, they could paradoxically decrease in the rest of the world,” said Mellerud in an April 8 report. “The demand for shipping machines to the United States should fall, probably to more zero.”
“Manufacturers will meet with excess actions originally intended for the American market. To unload this surplus, they will probably have to reduce prices to attract buyers to other regions,” he added.
The fall in prices of mining platforms could see non-American mining operations develop and take a larger slice of Bitcoin Hashrate, said Mellerud.
Source: Jaran Mellerud
President Donald Trump unveiled the “reciprocal prices” of his administration on almost all countries on April 2. Some of the largest manufacturers of Crypto mining machines are based in countries that are touched by prices, including Thailand, Indonesia and Malaysia, which have experienced 36%, 32%and 24%, respectively.
The manufacturers of crypto Bitmain, Microbt and Canaan crypto mine platforms have moved to some of these countries to bypass a 25% rate that Trump imposed on China in 2018 during his last administration.
Annual change in American prices on China, Indonesia, Malaysia and Thailand since 2017. Source: Source: Hashlabs exploitation
Mellerud noted that Trump’s latest prices would mean a mining platform that would initially cost $ 1,000 for $ 1,240 in the United States.
“Meanwhile, in Finland and most other countries, there are no prices, so the cost of a $ 1,000 machine remains unchanged.”
“In an industry as sensitive to costs as Bitcoin operations, a 22% price increase on machines can make operations financially unbearable,” he added.
No return of Trump’s prices – “the damage is caused”
Mellerud thinks that a future reversal of the Trump administration prices would not restore us the confidence of crypto cryptography operators.
“Even if these prices are canceled in a few months, the damage is caused – confidence in long -term planning has been shaken,” said Mellerud. “Few people will feel comfortable making major investments when critical variables can change overnight.”
He said that we, the minors felt reassured when Trump returned to the White House, expecting a more stable regulatory environment.
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“But they are now experiencing the back of his unpredictable policy changes,” said Mellerud.
The United States represents almost 40% of the network’s hashrate. Mellerud said there was no reason why we were minors to unplug their machines and do not expect the Hashrate Bitcoin Total from the United States to fall.
However, the path of expansion is now “stiff and uncertain,” he said, and consequently, the United States could lose a considerable share of Hashrate.
Trump’s prices have shaken almost all markets, including cryptographic markets and Bitcoin (BTC), which is down 4% in the last 24 hours to $ 76,470, according to Coingecko data.
Bitcoin is now at 30% reduction on $ 108,786 of the height of all time, January 20 – the same day that Trump returned to the White House.
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