When the Trump family's name meets cryptocurrency, the market's heat is like the chips in Bitcoin mining machines — instantly soaring to 100 degrees!
Recently, the Trump family's cryptocurrency project 'American Bitcoin' loudly announced a funding of $220 million, specifically for Bitcoin mining. As soon as the news broke, the cryptocurrency world exploded. Some shouted 'the bull market signal has arrived', while others coldly laughed, 'it's just another new script for harvesting'. As someone who has spent time in the mining rooms and has been a 'farmer' in DeFi, let's break down this $220 million today and see what secrets it hides.
1. $220 million for mining? First, understand the 'hash rate politics' behind it.
On the surface, this money is for buying mining machines, but in fact, it is the Trump family's 'political leverage' in the Web3 world.
Case comparison: When Musk announced that Tesla would accept Bitcoin payments, BTC surged 20% in one day. This time, the Trump family's entry coincides with a critical period before the U.S. election, clearly carrying the calculation of 'wooing cryptocurrency voters' behind it.
Data speaks: According to F2Pool data, the current Bitcoin network hash rate is approximately 600 EH/s. If this funding is fully invested in the latest mining machines (such as Antminer S21 Hyd, hash rate 335 TH/s), it could add about 0.6% to the total network hash rate — although the proportion is not large, the symbolic significance far exceeds the actual impact.
Zhuque's personal opinion:
Don't be swayed by the three words 'Trump'. Mining is essentially an energy business, and the key is to look at project location (rumored to be in Texas wind power areas) and electricity costs. If electricity prices do not drop below 4 cents per kWh, it is very likely to become 'a laborer selling power plants' after the halving in 2024.
2. Celebrity Coin Circles: The 'Traffic Monetization Formula' from Musk to Trump
The Trump family is not the first political and business giant to play in the cryptocurrency space, but they are definitely the ones who understand 'controversy equals traffic' the best:
Classic routine review:
Stage 1: Celebrities create FOMO (Fear of Missing Out) emotions (referencing Musk's Dogecoin)
Stage 2: Community speculation drives prices up (for example, Trump NFTs once soared to 1.5 ETH per card)
Stage 3: Establishing 'real business' to secure long-term interests (this mining operation is the ultimate harvesting tool)
Risk Warning:
In 2022, the NFT project Liquidifty promoted by Brazilian star Neymar ran off, with investors losing over ten million dollars. Celebrity projects often have 'token unlock day = countdown to a price crash'.
Personal Strategy:
If the project issues tokens later, focus on observing the token economics:
Is there real mining revenue for buybacks (referencing Bitmain's ANTMINER token model)
Has the Trump family committed to locking up funds (referencing El Salvador's 'Volcano Bond' model)
Otherwise, it is likely to become a farce of 'the mining machine hasn't started, but the token has already gone to zero'.
3. The Last Carnival Before the 2024 Bitcoin Halving? Three Opportunity Points for Ordinary People
With this wave of institutional funds entering, the Bitcoin mining industry is witnessing a 'big fish eat small fish' scenario:
Opportunity 1: Snagging second-hand mining machines
The price of Bitmain's S19 series has dropped from a peak of $12,000 to $400; when old miners exit, it is often a bottom-fishing opportunity.
Opportunity 2: Arbitrage in hash rate derivatives
By hedging with Hashrate Index futures, one can profit from price fluctuations in hash rates (the hash rate volatility in 2023 exceeded 200%).
Opportunity 3: Political concept MEME coins
Referencing the hundredfold market during the 2020 'BIDEN coin/TRUMP coin' election season, prepare relevant ecological tokens in advance.
Zhuque's personal advice:
Ordinary people should not blindly follow the trend to set up mining farms (the payback period has extended to 18-24 months), but can indirectly bet through stocks of mining companies like MARA, RIOT, or participate in compliant hash rate tokenization products (like Binance's cloud mining).
"When Trump's mining machines start roaring, are you ready to hop on this 'political coin' express, or quietly stock up on hash rate futures for the explosion? Remember: In the cryptocurrency world, the visible excitement is cost, while the invisible calculations are profit."
If you feel helpless and confused in trading right now, want to learn more about cryptocurrency knowledge and first-hand cutting-edge information, click on my avatar to follow me, and you won't get lost in this bull market!$BTC