In a Bizarre Statement, Trump Says Bitcoin Should Only be Mined in the US
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In a Bizarre Statement, Trump Says Bitcoin Should Only be Mined in the US

Donald Trump is advocating for the centralization of Bitcoin mining in the United States, arguing it would help the country achieve "energy dominance" and serve as a bulwark against central bank digital currencies.
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Former President Donald Trump is calling for the centralization of Bitcoin (BTC) mining in the United States, arguing it would help the country achieve “energy dominance.” In a post on Truth Social, Trump declared, “We want all the remaining Bitcoin to be MADE IN THE USA!!!

He further suggested that U.S.-based mining could serve as “our last line of defense” against central bank digital currencies (CBDCs) and claimed that President Biden’s “hatred of Bitcoin” benefits geopolitical rivals like China and Russia.

The comments came after Trump, who became the first presidential candidate to accept cryptocurrency donations in 2023, met with executives from U.S. mining firms CleanSpark Inc. (NASDAQ: CLSK) and Riot Platforms (NASDAQ: RIOT).

The former president’s embrace of Bitcoin mining aligns with his “America First” energy policies but raises questions about the implications of centralizing the decentralized cryptocurrency.

Understanding Bitcoin Mining

Bitcoin mining is the process by which new bitcoins are created and transactions are verified on the cryptocurrency’s blockchain network.

Miners use specialized computers to solve complex mathematical problems, receiving newly minted bitcoins as a reward for their efforts. Currently, a successful miner earns 3.125 bitcoins for adding a block to the blockchain, an amount that is halved roughly every four years.

The mining process is highly energy-intensive, with the Bitcoin network consuming an estimated 176 terawatt-hours of electricity annually worldwide. Profitability depends on factors like the price of Bitcoin, cost of equipment, and access to cheap electricity.

As the cryptocurrency has gained mainstream acceptance, publicly traded companies have entered the mining space, with Marathon Digital Holdings ($5.60B), CleanSpark ($3.63B), and Riot Blockchain ($2.88B) ranking among the largest by market capitalization.

Implications of Bitcoin Mining Centralization

While Trump’s call for U.S.-centric Bitcoin mining could bring more transparency and regulatory oversight compared to mining in countries like China, it raises concerns about centralization. Bitcoin’s decentralized nature is considered one of its core strengths, with a global network of miners competing to validate transactions.

Concentrating significant mining power within U.S. borders could make the network more vulnerable to government interference or targeted attacks. It may also run counter to the cryptocurrency’s founding ethos of decentralization and power distribution.

Do you think Bitcoin mining should be centralized in any one country? Let us know in the comments below.

Disclaimer: The author does not hold or have a position in any securities discussed in the article.