The Trump administration tariffs can collapse the US demanding for Bitcoin mining rigs, which will benefit from overseas mining operations because manufacturers look out of the US to sell their excessive inventory for cheaper, Hashlabs mining CEO Jaran Mellerud said.
“As machine prices are rising in the US, they can be reduced worldwide,” Mellerud Says In a April 8 report. “The demand for shipping machines in the US is set to be plummet, probably close to zero.”
“Manufacturers will be left with excessive stock originally intended for the US market. In order to offload this excess, they will likely need to reduce prices to attract consumers to other regions,” he added.
Falling mining rig prices can see the mining operation scale that is not the US and take a larger cut of the total bitcoin hashrate, Mellerud said.
Source: Jaran Mellerud
US President Donald Trump announced his administration’s “reciprocal tariffs” in almost every country on April 2. Some of the largest crypto mining machine manufacturers are based in countries most difficult to hit by tariffs, including Thailand, Indonesia and Malaysia, which saw tariffs of 36%, 32%and 24%, respectively.
Crypto Mining Rig Makers Bitmain, MicRropt and Canaan moved to some of these countries to avoid a 25% Trump tariff imposed on China in 2018 in his last administration.
Annual Changes in US tariffs in China, Indonesia, Malaysia and Thailand since 2017. Source: Hashlabs mining
Mellerud noted that Trump’s latest tariffs mean a mining rig that initially costs $ 1,000 to be priced at $ 1,240 in the US.
“Meanwhile, in Finland and most other countries, there are no tariffs, so the cost of a $ 1,000 machine remains unchanged.”
“In an industry as costly sensitive such as Bitcoin mining, an increase of 22% price increases on machines can make operations unobtrusive,” he added.
Nothing restored from Trump’s tariffs – ‘The damage is done’
Mellerud believes in the future Return of the Trump administration’s tariffs Crypto mining operators will not return our trust.
“Although these tariffs have been combined for a few months, the damage has been done-the trust in long-term planning is shaken,” Mellerud said. “Few will be comfortable making major investments when critical variables can change overnight.”
He said US miners felt that Trump returned to the White House, expecting a more stable regulation environment.
Related: Bitcoin Hashrate Tops 1 Zetahash in historical first, trackers show
“But they are now experiencing the flip side of his unpredictable policy changes,” Mellerud said.
The US account is about 40% of the network hashrate. Mellerud said there was no reason for US miners to unplug their machines and not expect the total bitcoin hashrates that came from the US to collapse.
However, the expansion path now is “steep and unsure,” he said, and as a result, the US may lose a large part of Hashrate.
Trump’s tariffs shake in almost every market, including crypto and bitcoin markets (Btc), which has dropped 4% in the last 24 hours up to $ 76,470, coingecko Data Shut up.
Bitcoin is now 30% out of $ 108,786 all-time highly set on it on January 20-on the same day that Trump re -entered the White House.
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