Trump wants all Bitcoin to be mined in America - can it happen?

Bittime - Bitcoin mining is big business in the US, accounting for about 40% of the total global mining hashrate. With Donald Trump's return to the White House, he expressed ambitions to make America a Bitcoin mining hub, with the hope that all remaining coins could be mined on American soil.

However, experts warn that realizing this Trump plan may not be as easy as imagined.

Although Trump has pro-crypto support, many doubt his ability to shift the remaining 60% of Bitcoin mining hashrate to the US. Matthew Sigel, head of digital asset research at VanEck, stated that to achieve this, mining operations around the world would have to be shut down, and operations in the US would have to take their place.

This shows the huge challenge involved in realizing this ambitious plan.

Also read: Bitcoin Mining Company Disburses 7,377 BTC in Loan Scheme

Infrastructure Challenges and Energy Costs

One of the main obstacles in Trump's plan is the existing infrastructure in the US. CJ Burnett, head of revenue at Compass Mining, emphasized that the US does not have sufficient electrical infrastructure, physical computing hardware, and low enough energy costs to be the only place to mine all the remaining Bitcoin.

Bitcoin mining requires large energy resources, and locations such as Kazakhstan, Russia, and Canada offer more favorable conditions for miners.

Bitcoin mining is a globally distributed network, driven by market economics and energy availability. Although the US has become a leader in Bitcoin mining following China's crackdown in 2021, infrastructure and cost challenges remain a barrier to Trump's ambitions.

Growth Potential Under Trump's Leadership

Despite the challenges, many industry leaders believe that Trump's leadership could bring positive changes to the Bitcoin mining industry in the US. Ro Shirole, Chief Business Officer at Blockmetrix, stated that better policies could make the US more attractive for miners to establish their operations in the country.

This could accelerate the growth of the Bitcoin mining industry in the US.

Frank Holmes, CEO of Hive Digital Technologies, also emphasized that continued support for Bitcoin innovation will come under Trump's leadership. With the positive change in sentiment towards Bitcoin, many expect that the business climate in the US will be better compared to the strict regulations seen during the previous administration.

Also read: Investors are Eyeing Bitcoin for Long-Term Investment, Here's Why!

Impact on Bitcoin Price

Since Trump's victory, Bitcoin has experienced a surge in price, breaking new highs. The largest coin is currently trading above $98,000 per coin, with a surge of almost 1% in the last 24 hours. Many people in the crypto industry are hoping that Trump's leadership will create a better climate for Bitcoin and mining growth in the US.

With all these factors, Trump's plan to make the US a Bitcoin mining hub faces major challenges, but also offers significant growth potential.

Can this ambition be realized? Only time will tell, but one thing is certain: the Bitcoin mining industry will continue to thrive, regardless of who is at the helm.

FAQ

What are Donald Trump's plans regarding Bitcoin mining?

Donald Trump plans to make the United States a Bitcoin mining hub, with the hope that all remaining coins can be mined on American soil. He expressed this ambition as part of his pro-crypto support during his presidency.

How big is the US contribution to Bitcoin mining today?

Currently, miners in the United States account for about 40% of the total global Bitcoin mining hashrate. Although the US became a leader after China's crackdown on the industry, there is still a challenge to shift the remaining hashrate to the country.

What are the main challenges in realizing Trump's plan for Bitcoin mining in the US?

The main challenges include the lack of adequate power infrastructure, high energy costs, and the need for physical computing hardware. Experts state that in order to shift all mining operations to the US, many operations in other countries would have to be shut down, which is considered unrealistic.

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References

decrypt.co, Trump Wants All Future Bitcoin Mined in US-Is That Even Possible?, accessed on January 7, 2025.

Author: AWW