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Cryptocurrencies are not well-liked by authorities, and it is an undeniable fact that bad actors in this field contribute to the negative perception. Crypto opponents have an additional weapon, especially for the US region: China’s national risk. The negative approach towards miners, from Binance CEO CZ to others, is partly based on this.
Bitcoin Miners and China
According to The New York Times, Chinese-origin Bitcoin miners in the US are causing national security concerns. One of the miners’ operations is located near the Microsoft data center supporting the Pentagon and the US Air Force nuclear missile base in Wyoming. If we strain our memory a little, we can easily recall the news from NYT that highlighted SBF during the bankruptcy process and afterwards.
The NYT states that these Bitcoin mining operations are under investigation. In a letter previously sent to the government committee, the Microsoft team mentioned that the miners’ locations could enable the Chinese to conduct “comprehensive intelligence gathering operations.”
Unnamed US officials in today’s report said that they have been monitoring the facility in Wyoming for months and have taken various measures to mitigate potential intelligence threats.
The IMF also made statements today targeting Bitcoin. IMF officials, criticizing El Salvador’s use of BTC as a payment method, reiterated that this issue would be taken into account for a new financing agreement.
Chinese Miners in the US
While China banned cryptocurrencies, miners moved to alternative regions such as Russia, Kazakhstan, and the US. Given the more lenient approach towards cryptocurrencies, it was not surprising that miners flocked to the US in 2021. The details in the recent NYT report seem more like excessive skepticism. The theme being Bitcoin and China is interesting. If comprehensive research is conducted, they may also discover that Chinese businessmen are conducting various business operations in different locations.
Bit Origin stated in a statement to NYT that the location was chosen not because of its proximity to the Microsoft data center or missile base, but after an agreement was reached to obtain power from the local utility company.
According to today’s report, Chinese miners have established data centers for cryptocurrency mining in at least 12 states, including Arkansas, Ohio, Oklahoma, Tennessee, Texas, and Wyoming.
There are laws in numerous US states that restrict Chinese ownership of land due to security concerns. However, Texas provides many incentives to Bitcoin miners to utilize surplus energy and create employment in the region. Aside from power outages, the Texas region has been a focal point for miners since 2021 due to cheap energy.
