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Tuesday, March 21, 2023

Bitcoin Rises in the Stage of a Technological War Between the United States and China

The United States government has put bitcoin at the fore in its technical battle with China. It was signed recently by President Joe Biden after revealing his plans with chip or semiconductor legislation.

Yesterday, the United States Department of Commerce published its strategy for Lead the microchip industry needed to operate bitcoin mining equipment (asic, and altcoins (video cards).

In its plans, the United States included an investment of US$50,000 million to finance its Chips for America program. With this, it seeks to “rebuild its leadership in the semiconductor industry”, as Commerce Secretary Gina Raimondo pointed out.

The US government published its full strategy for this Microchip leads the industry, which he sees as “the key to the country’s economy and security”., Bearing in mind that they are essential to the operation of household items, such as coffee makers and refrigerators.

Semiconductors are also important for the operation of mobile phones, pacemakers and automobiles, as well as more sophisticated equipment, including military fighter jets.

The battle for control of the industry that is shaking the world

Taiwan is currently the country that dominates the chip industry with 47% above other producers, followed by China with 24%, while the United States is gone again with 8%.

So far, The United States is a major consumer of foreign-made microchips, especially from China., So, with the idea of ​​reversing this situation, the North American nation has launched its Chips for the Americas program.

Projections point to Taiwan (in black) expanding its dominance in the semiconductor industry by 2025. Source: Trendforce.

The Biden administration pitched the legislation as a solution to the supply chain challenges brought to light by the coronavirus pandemic. during this time The global shortage of semiconductors affected the various industries that depended on them, including bitcoin mining.,

Even Taiwanese firm TSMC, the world’s largest manufacturer of microprocessors, limited sales of chips for the bitcoin sector, in times of shortage.

As a result, Bitmain, Responsible for the creation of Antminer, one of the most widely used lines of bitcoin mining hardware in the world., And others such as MicroBT and Innosilicon delayed the delivery of the new devices.

Subsequently, the shortage of microprocessors directly affected prices, increasing the cost of ASICs when demand increased. Then it became clear how The centralization of microchip production could affect the bitcoin mining industry.

Will Bitcoin Benefit From the Technological War Between China and the United States?

Before passing the CHIP law, the United States had launched an offensive against China Restricting US companies’ access to technology components Developed in an Asian country without the permission of the government.

Then, as Cryptonoticious reported, the visit of United States Congressional President Nancy Pelosi to Taiwan made it clear that something was being handled.

China clearly understood the message and responded with a series of sanctions, of which the ban on the export of natural sand from China to Taiwan stood out. This silicon-rich resource is used to manufacture semiconductors.

Now, both the world powers are battling for dominance in the microprocessor industry, It is still in doubt what the long term consequences for bitcoin mining could be. Which relies on ASIC equipment and digital mining to generate other cryptocurrencies with GPU.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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