Is Bitcoin mining in the US seeing a ‘revolution’?

Bitcoin, the world’s largest cryptocurrency, was pioneered to tackle the shortcomings of the centralized financial ecosystem. However, PayPal’s co-founder, Peter Thiel, elaborated his outlook on the digital currency’s role in a recent Richard Nixon Foundation event. 

Peter, emphasized that Bitcoin poses a threat to fiat currency. He perceived it to be a Chinese financial weapon and wanted the United States to emerge victorious in the battle. 

Thiel said, 

“It threatens fiat money, but especially threatens the US dollar. If China is long on Bitcoin, perhaps from a geopolitical perspective, the US should be asking some tougher questions about how that exactly works.” 

Being a pro-Bitcoin maximalist himself, Thiel’s remark managed to create pandemonium in the crypto-community. 

Anthony Pompliano, founder and partner at Pomp Investments, went on to justify Thiel’s stance and pointed out the emergence of global competition when its comes to the emerging crypto market. He highlighted that there were other countries who were trying to use this to destabilize and financially attack the United States. In a recent CNBC interview, he said

“What we need is the United States to be the leader here. We need to embrace this and make sure to use this technology to remain the leader on the global stage.”

It becomes important at this juncture to point out that China is the central hub where a major chunk of Bitcoins are currently being mined. The United States, is, however, trying to refine and build its crypto infrastructure quickly. 

Stating instances of how Great American Mining captures stranded gas and uses it as Bitcoin mining power and Kentucky announcing tax breaks to crypto miners, Pompliano said, 

“What we are seeing is a revolution when it comes to Bitcoin mining and power generation in the United States. We are going to continue see the build-out happen.”

Talking about the political landscape, he said,

“We have senators and congressmen that hold bitcoin and are pro-bitcoin. So, they’re going to continue to push the pace of innovation and embrace this stuff.”

However, Bloomberg’s recent Crypto Outlook report titled ‘Rising Bitcoin Adoption Tide’ narrates another constructive tale that underlines the threat gold faces because of Bitcoin. The report predicts Bitcoin having a fairly high chance of stepping into the portfolios of traditional investors. 

The report highlighted, 

“Gold is fighting a battle with Bitcoin, which can earn 6-8 percent in crypto saving accounts and is well in its way to becoming a global reserve asset in a digital world.”

The escalating institutional and retail demand for Bitcoin could see it reach price extremes, similar to the ones it has seen during the 2017 bull run and what it is seeing at the moment. It that shapes up well, Bloomberg predicted that Bitcoin’s price would head towards the $400,000 mark.