Article Summary
A new bitcoin mining firm backed by Eric Trump and Donald Trump Jr. is set to go public this year, further deepening the Trump family’s involvement in the cryptocurrency market. American Bitcoin, co-founded by Eric Trump and backed by Donald Trump Jr., will merge with the publicly-traded Gryphon Digital Mining, allowing it to be listed on the Nasdaq stock exchange. The company aims to mine bitcoin below market cost and build up a reserve of the cryptocurrency.
What This Means for You
- If you are interested in bitcoin mining, the increased involvement of a well-known and well-funded player in the market could potentially drive down costs and make it more accessible.
- The Trump family’s continued interest in cryptocurrency could potentially lead to more mainstream acceptance and investment in the market.
- However, it is also important to be aware of the controversies surrounding bitcoin mining, including its high energy consumption and potential impact on the environment.
- As the crypto market continues to grow and attract more mainstream attention, it may be worth staying informed and considering how it could potentially affect your own investments and financial decisions.
Original Post
A bitcoin mining firm backed by President Trump’s son Eric will go public this year, the company announced Monday, deepening the Trump family’s interest in cryptocurrency. American Bitcoin — which lists Eric Trump as its co-founder and has its roots in a company backed by Donald Trump Jr. — is merging with the publicly-traded Gryphon Digital Mining. The merger is expected to close as early as the third quarter of this year.
The company’s goals, according to an overview posted Monday, are to mine new bitcoin “below market cost” and to build up a reserve of the cryptocurrency.
“Our vision for American Bitcoin is to create the most investable Bitcoin accumulation platform in the market,” Eric Trump said in a statement.
Crypto mining also has a stamp of approval from Eric and Donald Trump Jr.’s father. The president pledged to make the United States a “bitcoin mining powerhouse” last year.
What is bitcoin mining — and why is it controversial?
Mining is an essential part of how bitcoin operates. The currency isn’t centralized, and instead relies on independent actors — known as miners — who carry out complicated math problems to verify bitcoin transactions and list them on a public ledger known as a blockchain. As a reward for this work, miners earn units of bitcoin for crunching the numbers successfully.
The value of a bitcoin stands at around $102,000, and the reward for mining decreases over time as the number of bitcoin in circulation increases, making mining a lucrative endeavor.
But mining is controversial because it’s extremely energy-intensive, with miners operating gigantic data centers filled with server racks that carry out the mathematical operations necessary to mine. A team from Cambridge University estimates bitcoin uses about 187.9 terawatt-hours of electricity per year, more than the entire country of Egypt.
Key Terms
- Bitcoin
- Mining
- Blockchain
- Publicly-traded
- Cryptocurrency
- Reserve
- Lucrative
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