"Crypto Cold War"US VS China for Blockchain Supremacy.
hello LAKSHMI Community members,
Introduce me to Abenk (@Atim1234) previously; I am a crypto enthusiast as well as a freelance graphic designer.
Hopefully, I will be the most influential member of this group.
So, for this first entry, I'd like to talk about the Crypto Cold War between the United States and China for Blockchain Supremacy.
The world's two major economies compete in areas ranging from trade to artificial intelligence. The United States' relationship with China can be described as "very cold."
From commerce to banking, artificial intelligence and telecommunications, the world's first and second biggest economies are constantly at odds.
China and the United States have also had diplomatic spats over China's treatment of its neighbors, especially Taiwan.
When it comes to 5G technologies, there is fierce rivalry between the two nations. Huawei's 5G network expansion, which some say is a scheme by the Chinese state to spy on its European competitors, has come under fire from US authorities lobbying to block Chinese firms from abandoning American allies' digital infrastructure.
China's rising AI capabilities, facial recognition technologies, electric vehicle demand, and market domination in solar panels. Much of this has pushed the Asian behemoth into greater rivalry with America, and in some ways, beyond it.
One of the Cold War America-China technological battlegrounds that has lately heated up is who can rule the blockchain and cryptocurrency industries.
America's Approach to the Cryptocurrency and Blockchain Industry
Although the United States has been pragmatic in its approach to Bitcoin, blockchain, and open ledger technologies, China has been more aggressive. America, among other factors, is attempting to establish a revolution that will expand and restore Chinese miners' dominance.
Core Scientific, a US corporation that constructs Bitcoin mining operations in the United States, has raised hundreds of millions of dollars to construct mines in abandoned factories around the country.
The Marathon Patent Group, which mines in Montana and North Dakota, has seen its stake rise ninefold in early 2021, and rival Riot Blockchain, based in upstate New York, is now seeing a significant return on investment.
"There is a new space race underway. The competition in the virtual world to create and manage the networks and government that will power the global economy, "Perianne Boring, president of the US Chamber of Digital Commerce, wrote about it. source
When nations are drawn to the world of digital currencies. Those with the most clout in a mining environment, such as Bitcoin, would profit the most.
"At least 65 percent of cryptocurrency mining is concentrated in China, which means the Chinese government has the majority needed to take control of the protocol and can effectively block or reverse transactions," Ripple co-founder Chris Larsen wrote in an opinion piece. source
YUAN Digital China
CBDC, or Central Bank Digital Currency, has recently gained popularity in a number of countries around the world. China, in particular, is doing further research. Meanwhile, the United States is also in the early stages of investigating public expectations of its own digital currency.
However, China's ambition for its digital currency, aside from having clear access to its citizens' buying patterns, will eventually threaten the US Dollar, which has become the world's reserve currency.
According to Alex Tapscott, co-author of the book Blockchain Revolution, "China is on the verge of releasing its own digital currency, while the United States, at least on this subject, is faltering." The two visions for the central bank's digital currency are diametrically opposed.
Although the United States wishes to preserve the US dollar as a global reserve currency, China wishes to sell its own economic model around the globe while tightening controls at home.
More generally, Chinese blockchain technologies are assisting the Asian behemoth in distinguishing itself from its rivals. The People's Bank of China alone has filed over 80 patents on digital currencies. Those in the United States also expressed worry about the growing distance between the two nations.
“It is important for American and Western leaders to comprehend how serious China is.”
The People's Republic of China's President, Xi Jinping, told the country's most influential political body that gaining an edge in blockchain is critical to the country's potential growth.
"It is critical to strengthen basic science, improve original innovation capability, and aspire to allow China to take the lead in the developing blockchain sector, hold the top spot in innovation, and profit from new industries," he said.
Can America catch up to China's growth in the crypto industry, or will they slip behind?
best regards and introductions to the LAKSMI team :
@mehta
@acostaeladio
@chetanpadliya
@stubborn-soul
