US Turns To XRP As A Way Of Tackling China Crypto Dominance
The US is exploring the possibility of pitting XRP against Bitcoin.
White House Researching Cryptos
The United States government has come out to tackle the cryptocurrency sector dominance of Asian heavyweight China. As a response measure, the US is now pitting XRP against Bitcoin.
Cory Johnson from Ripple confirmed that Washington was looking into the impact of bitcoin mining dominance by China. At the moment, China’s bitcoin mining share has figures as high as 80%. The US authorities have shown interest in cryptos following adoption among millennials and seasonal investors. The U.S. government is now looking at the positive implications of cryptocurrencies on the country’s economy
The U.S. views China as a major economic threat and tackling the country’s mining firms might be a big challenge. Therefore, The Donald Trump led administration has resolved to launch a competition for bitcoin.
Addressing the media, Johnson acknowledged that he was shocked to see the open-mindedness from the government's side. He pointed out that during his meeting with state officials, he did not expect the reception to be warm. Johnson further revealed that the White House was doing a lot of research on the crypto sector ’s potential. The state wants to understand the reason behind the high level of bitcoin mining activity in China.
Data shows that Bitmain from China is responsible for over 50% of the global bitcoin. The firm is producing the highest hash power through its mining arms.
As for Ripple, we have some controversy over the company’s control over XRP supply. The firm is in charge of handling about 60% of the XRP in the market. This control has caused fears that Ripple can alter the prices of XRP without notifying its users.
Despite the fears, XRP appears to be performing well in the market. It has kept on the heels of other major cryptocurrencies. The crypto has been stable despite the market witnessing a drop of 70%. XRP realized its highest gains in September rising from $0.28 to $0.60.
With the development in the U.S., China is busy cracking the whip on crypto related firms. A number have resolved to quit the Chinese market. At the moment, bitcoin-related ventures are being banned. Mining operations have been hampered in a number of towns within China.
Taking a keen look at the situation, China appears to be less interested in competing with the US in regards to cryptocurrencies than vice-versa. At the moment, companies are finding it easier to operate outside China, giving the US the upper hand.