Bitcoin and cryptocurrency scenario in the US, China and Australia

US President wants a $6 trillion stimulus budget. “Six trillion dollars? This is good for Bitcoin,” said Edward Snowden on Friday, May 28, on his Twitter profile, following news that US President Joe Biden wants a $6 trillion budget for the fiscal year of 2022. Biden has already launched three stimulus packages to contain the economic downturn caused by the advance of the coronavirus.

Edward Snowden on Bitcoin

Six trillion dollars?

This is good for Bitcoin.

— Edward Snowden (@Snowden) May 28, 2021

A former CIA analyst, Snowden has been in exile in Russia since 2013 when he caused a political earthquake by revealing illegal espionage practices by the United States’ secret service.

Since then, the American has also defended the privacy of bitcoin because of the digital surveillance of the States. However, he understands that in this regard the Monero cryptocurrencies (XMR), an open source cryptocurrency, created in April 2014, and Zcash (ZEC), a cryptocurrency based on the Bitcoin code base and created in 2016, are still large competitors, as they are totally focused on anonymity.

Bitcoin Scenario

The price of bitcoin is currently not much different than when Biden was sworn in as U.S. president on January 20 this year. At the time, 1 BTC was trading at around $35,000. On Saturday, May 29, the cryptocurrency was hovering around $ 34,000. But it was close to double in mid-April, when it hit $ 63,000.

Also on Sunday, May 30, the Monero, ZCash, Horizen and Dash cryptocurrencies soared about 22% in the past 24 hours, restoring some of the losses suffered in the latest overall market slump.

Bitcoin traders in Australia

With bitcoin remaining stable, some investors are wondering why privacy currencies have skyrocketed while the rest of the market remains so quiet?

It may have something to do with the Australian Tax Office’s May 28 statement that urged the country’s 600,000 cryptocurrency traders to pay capital gains taxes on their profits and reminded them that there are ways to monitor activities.

“Although it appears that the cryptocurrency operates in an anonymous digital world, we closely track where it interacts with the real world through data from banks, financial institutions and online cryptocurrency exchanges to track money back to the taxpayer,” said the Commissioner Organ assistant, Tim Lo, in a statement.

The ability of privacy coins to hide transactions makes it difficult for tax offices to pinpoint tax fraud. Therefore, when tax agencies crack down on cryptocurrencies, privacy currencies can sometimes be stimulated. They increased 30% shortly after US President Joe Biden announced the fiscal plans for the market.

China’s crackdown on Bitcoin miners

As the Chinese government cracks down on Bitcoin mining, cryptocurrency mining gets 16% easier.

Bitcoin’s mining difficulty dropped on Sunday, May 30, to 21 trillion, the sharpest drop this year. The correction suggests that Chinese miners are shutting down some machines ahead of new government crackdowns on mining.

Bitcoin mining difficulty measures the amount of computer power needed to produce new Bitcoins. The network adjusts the difficulty (approximately) once every fortnight to reflect the level of competition among miners. Lower mining difficulty indicates less competition.

More than 75% of the miners who validate Bitcoin transactions are based in China. Last Friday, the government added Bitcoin mining to a list of industries that required monitoring to protect the economy.

Shortly thereafter, Huobi and OKEx restricted Chinese customers’ access to certain services. A spokesman for Huobi told Decrypt the restrictions were in response to the government’s comments. OKEx told Decrypt that its restrictions are intended to remain in compliance with regulators.