BTC: Chinese financial weapon

Bitcoin (BTC) traded on either side of USD 60,000 throughout the weekend. Despite China's efforts to limit the development of BTC, the founder of PayPal wonders if BTC is a ``Chinese financial weapon'' against the United States.

Current increase in demand for mining equipment

Peter Thiel, said he wondered "whether at this point BTC should also be considered in part a Chinese financial weapon against the United States" and that "the long BTC from China." PayPal founder Thiel's remarks mirror reports last year that former Director of National Intelligence John Ratcliffe wrote to SEC Commissioner Jay Clayton to express concern about the concentration of crypto mining in China. While China has accounted for the majority of BTC mining since the asset's emergence, its relative share is declining in favor of the United States, Russia and Kazakhstan. Recent anecdotal evidence suggests that non-Chinese mining companies are driving the current increase in demand for mining equipment. tells us about PayPal.

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Recent headlines highlight the expansion of BTC mining in North America. These include Riot Blockchain's acquisition of Whinstone US in a deal worth about $651 million USD, or the emergence of the institutional-focused BTC mining pool Foundry USA, launched in 2020, one of the top 10 contributors to the hash rate. BTC mining has also benefited from direct or indirect regulatory benefits and incentives in the United States, such as a law exempting BTC miners from paying certain taxes in Kentucky or Wyoming's crypto-friendly laws. Meanwhile, Chinese authorities have taken a number of steps to limit the development of BTC. Thiel's comments seem to describe a hypothetical situation, rather than a current reality, and do not reflect China's current approach to BTC and crypto. China has, for all intents and purposes, worked harder than any other nation to limit the development of crypto, and the country has thus far been more concerned with capital flight from its own borders than with the hegemony of the USD.