As if the bear market were not enough, the US government’s punitive tariffs are now also making life difficult for Chinese crypto-mining manufacturers. The “Trump tariffs” amount to 25 percent and currently affect 800 Chinese products. Among the Chinese crypto mining manufacturers Bitmain, Canaan and Ebang, this regulation hits the industry leader Bitmain hardest.
Bitmain got off to a very good start in the USA. It was only in July that the company opened a branch in Silicon Valley. First, Bitmain did not have to pay taxes on its Antminer S9. However, due to a change in the product classification – instead of a “data processing machine” the US government now classifies it as an “electrical machinery apparatus” – it is now one of the 800 products sanctioned by the US government.
The US customs duties for Bitmain products add up to 27.6 per cent: the 25 per cent penalty duty is supplemented by 2.6 per cent for products in the “electrical machinery apparatus” class.
Bad timing before Bitcoin profit review
Even though customs duties apply to all manufacturers, the South China Morning Post assumes that Bitmain will be the hardest hit like this https://www.geldplus.net/en/bitcoin-profit-review/. Mining, overseas and the Antminer S9 are among Bitmain’s most important business areas. Approximately half of the company’s turnover is generated overseas. With Canaan and Ebang however it is approx. nine and/or four per cent. Furthermore, the sale of the Bitcoin profit review Antminer S9 alone accounts for more than 50 percent of Bitmain’s turnover. The sale of mining-hardware is responsible for 94 percent of the turnover.
This is not good news, especially for the IPO announced in September. Especially since Bitmain has recently been struggling with declining sales anyway. Although an e-mail leaked in August still gave a positive picture. Bitmain is said to have made a profit of 1.1 billion US dollars in the first quarter of this year and, according to Mark Li, senior analyst at Sanford C. Bernstein, a turnover of 1.9 billion. In the second quarter, sales fell to 950 million. In addition, according to Mark Li, Bitmain also faces growing competition from GMOs and Canaan, among others.
Conclusion of the Bitcoin profit scam
The mood in the crypto world is changing says onlinebetrug. Little is left of the euphoria of 2017, when every ICO promised the next “Facebook”. There is even talk of a possible end to the Bitcoin profit scam ICO era. Consolidation is also spreading among the countless crypto funds. At the same time, however, crypto exchanges such as Huobi or Binance are expanding. Furthermore, financial companies worth billions like Fidelity or Goldman Sachs are entering crypto trading. One could speak of a contradiction. But “growing up” sounds more realistic. Unregulated ICOs become regulated STOs. A market full of “royalty-free” crypto exchanges becomes a sustainable crypto economy. And the harsh reality of competition and regulation is facing acting market leaders.