The U.S.’s Tariff War With China Is Good For Bitcoin Mining

[God Of Thunder]

I was reading a Take on BitcoinMagazine, and they explicitly shared that.

"The increased Chinese tariffs on the U.S. will make it more costly for U.S.-based public Bitcoin mining companies to purchase ASICs (the premier machines used to mine bitcoin), the majority of which are produced in China.

And this will be largely beneficial for the health of the Bitcoin mining ecosystem"

I don't really understand the fact that how it will be beneficial for the Bitcoin mining ecosystem?
Does it mean that difficulties won't increase much as before?

You can read the full article here: https://bitcoinmagazine.com/takes/the-u-s-tariff-war-with-china-is-good-for-bitcoin-mining

[Stompix]

I don't really understand the fact that how it will be beneficial for the Bitcoin mining ecosystem?

Well, first, the analysis is from Bitcoin Magazine, so whatever happens, it's good for Bitcoin.
War? Good for Bitcoin! Economic slowdown, good for Bitcoin. Humanity wiped out, good for Bitcoin.

Now their take is that the hash rate will be more distributed since the US will not buy that many ASICs and farms in other countries will suddenly pop-up a a consequence, but that is ignoring assembly in the US, the enormous cheap electricity available, the money thoe companies have and the amount of ASICs they already have purchased.

Also, second thing, it's irrelevant where the farms are if they mine on the same pool, so as long as Mara which is a US company has its 50% of the hashrate from Japan or India it doesn't matter, they will still obey by US rules.

[Mate2237]

US will increase their mining machine products and Donald Trump has already told the product industry to stop importing China goods and China too will increase theirs to other countries for consumption. And this tariff war will make other countries to wake up and produce things by themselves to be used. And this will benefit bitcoin because there will be a serious competition in the mining sector in the ecosystem.

[electronicash]

US will increase their mining machine products and Donald Trump has already told the product industry to stop importing China goods and China too will increase theirs to other countries for consumption. And this tariff war will make other countries to wake up and produce things by themselves to be used. And this will benefit bitcoin because there will be a serious competition in the mining sector in the ecosystem.

it will take time before countries will ever produce something for themselves while they still can depend to Chinese products especially EU, middle east to Asia. China is basically the factory of the world, i don;t think the whole world will try to manufacture something for themselves all because US wants their country wants to build assembly lines.

not that easy when importing raw materials comes from China itself. if the Chinese factories can produce something while they are in Africa, the more they could produce in mainland.

[God Of Thunder]

it will take time before countries will ever produce something for themselves while they still can depend to Chinese products especially EU, middle east to Asia. China is basically the factory of the world, i don;t think the whole world will try to manufacture something for themselves all because US wants their country wants to build assembly lines.

Exactly. Not every country has the same capability to start producing everything. Otherwise, every country would start making nuclear weapons so they can be stronger than others. But every country does not have the same genius scientist and the same technology to start producing everything.

Once, a Chinese guy revealed that it cost only $10 in China to produce a replica version of the iPhone 15. They can produce almost anything at a cheap price that you cannot even imagine. So, instead of producing by yourself, you can always import from China or other countries which may cost less.

[ABCbits]

I don't really understand the fact that how it will be beneficial for the Bitcoin mining ecosystem?

You can read the full article here: https://bitcoinmagazine.com/takes/the-u-s-tariff-war-with-china-is-good-for-bitcoin-mining

Article you shared already state the reason.

As Troy Cross eloquently explained in “The Future OF Bitcoin Mining Is Distributed”, if one country controls too much of the Bitcoin hashrate, Bitcoin’s censorship resistance — one of its core value propositions — is put at risk.

And it's not mere speculation either, since one mining pool used to voluntary do that[1] and some pool caught excluding certain TX[2].

[1] https://ir.mara.com/news-events/press-releases/detail/1239/marathon-digital-holdings-becomes-the-first-north-american-enterprise-miner-to-produce-fully-aml-and-ofac-compliant-bitcoin
[2] https://b10c.me/observations/13-missing-sanctioned-transactions-2024-12/

[zeeMN]

With the price of bitcoin going over the roof, it's easy to side with anything Bitcoin! And the good part is that if you aren't from the USA you are guaranteed of cheap stuff from China , but can't say the same for UD citizenz how have been caught in crossfire because of an individuals ego.

[Stompix]

Once, a Chinese guy revealed that it cost only $10 in China to produce a replica version of the iPhone 15. They can produce almost anything at a cheap price that you cannot even imagine. So, instead of producing by yourself, you can always import from China or other countries which may cost less.

Bruh, seriously lets stop with this non-sense
Huawei itself can't be produced solely by China, here is how their phone looks:

China doesn't make chips, it does make lenses and sensors, it doesn't make ram modules, it doesn't make a ton of controllers.

China imports from South Korea roughly the same value of electronics it exports to the US,
https://oec.world/en/profile/country/chn?selector343id=Import
France has a 3 trillion economy, their imports from China are just 40 billion, if everything is made in China ,how is France even functioning? 

[NotATether]

it will take time before countries will ever produce something for themselves while they still can depend to Chinese products especially EU, middle east to Asia. China is basically the factory of the world, i don;t think the whole world will try to manufacture something for themselves all because US wants their country wants to build assembly lines.

This might be a naive opinion, but why don't US companies simply order the products form China to their European subsidiaries when they want to buy something? And then from Europe they can pay someone to ship the order to them in their name or something. It technically skirts the tariffs, but I don't suppose that regulations would allow that (plus it would make Trump quite unhappy that US companies are basically evading his executive order).

[Stompix]

This might be a naive opinion, but why don't US companies simply order the products form China to their European subsidiaries when they want to buy something? And then from Europe they can pay someone to ship the order to them in their name or something. It technically skirts the tariffs, but I don't suppose that regulations would allow that (plus it would make Trump quite unhappy that US companies are basically evading his executive order).

Illegal.
All products are taxed for the country of origin, not the last destination.
It would be illegal by both US standards and EU customs as it will get them in trouble here too for tax purposes. If it were so simple to avoid, everyone would set up a deposit based on countries with the least import tax and do so, but the penalties are so big that you could end up with more in a fine than one year of sales.

It can work if it's a company selling 100 teddy bears a month, no way you're going to get away with 20 000 containers a year.