U.S. Government Embraces Bitcoin: What this Could Mean for the Crypto Mining Industry

Mining / April 23, 2021

The rise in Bitcoin prices in recent months has been nothing short of meteoric, sparking curiosity around that cause.

According to a report from cryptocurrency news portal CentralBankCurrencies, discreet acquisition of Bitcoins by the Federal Reserve may have been a significant driver behind the crypto market’s recent rally. These acquisitions reportedly took place through at least six separate over-the-counter (OTC) desks, which enable exchange-free crypto trading with large sums of currency. Should this report prove to be true, it would be the latest in a series of encouraging developments in the U.S. government’s embrace of digital currency.

Over the past year, the Office of the Comptroller of the Currency (OCC) released three particularly significant letters, drawing enthusiasm within the crypto community. While a lack of clarity around the regulation of cryptocurrencies had long caused commercial banks to avoid them altogether, major financial institutions are beginning to come around. As they continue their acceptance of this modern form of money, it will eliminate barriers for investment firms and pension funds whose internal bylaws restrict them from managing their clients assets outside of federal chartered banks.

As the banking system continues its evolution, it can be expected that the general public will gradually become more open-minded to the idea of cryptocurrency being part of their everyday life. It is likely that Tesla centibillionaire Elon Musk’s eager embrace of Bitcoin will help accelerate this broad adoption. This begs the question, what could the implications be for the cryptocurrency mining industry?

As Bitcoin continues to pervade the global economy and eventually emerge as a go-to currency for everyday transactions, demand is expected to increase for both mining equipment and the hosting services that are necessary to manage it. While an explosion in demand and a global chip shortage are expected to intensify the scarcity of crypto mining equipment, a number of reputable resellers still have available room for orders to be placed, with companies such as Wattum Management providing additional hosting and management services as they continue to successfully maintain the high demand.  

Naturally, the widespread zeal surrounding cryptocurrency has led to skyrocketing demand for mining rigs and colocation and hosting services, not to mention the currencies themselves. As the price of Bitcoin and the broader crypto market continues to rise, this demand will only increase, making not only premier mining hardware a red hot commodity, but also the companies like Wattum who still have limited units available to order.