Donald Trump’s Vision for U.S. Bitcoin (BTC) Mining Dominance

In
a
bold
proclamation
that
has
sent
ripples
through
both
the
cryptocurrency
and
energy
sectors,
former
President
Donald
Trump
recently
suggested
that
all
remaining
Bitcoin
(BTC)
should
be
mined
on
U.S.
soil.
While
this
goal
is
technically
unattainable
due
to
the
decentralized
nature
of
Bitcoin
mining,
it
raises
questions
about
America’s
potential
to
dominate
this
burgeoning
industry.
As
of
2024,
the
U.S.
accounts
for
approximately
37.8%
of
global
Bitcoin
mining,
according
to
the
Cambridge
Bitcoin
Electricity
Consumption
Index.
Could
the
U.S.
push
this
figure
above
90%?

This
ambitious
goal,
while
challenging,
could
reshape
America’s
technological
and
economic
landscape
in
profound
ways.
Importantly,
the
thriving
of
the
American
Bitcoin
Mining
Industry
should
be
a
bipartisan
objective.
Whether
you
lean
left
or
right,
the
potential
for
job
creation,
energy
innovation,
and
technological
leadership
makes
this
a
topic
that
should
matter
deeply
to
both
Democrats
and
Republicans
alike.

Transforming
America’s
Energy
Wealth

The
United
States
is
blessed
with
an
abundance
of
natural
resources
ideal
for
energy
production.
It
boasts
48.3
billion
barrels
of
proven
oil
reserves
and
691
trillion
cubic
feet
of
natural
gas,
reflecting
significant
increases
from
previous
years.
Additionally,
the
U.S.
has
vast
potential
for
solar,
wind,
and
uranium
for
nuclear
power.
However,
it’s
crucial
to
not
forget
that
China
is
making
significant
investments
to
become
abundant
in
energy.
According
to
the
U.S.
Energy
Information
Administration,
China’s
total
energy
production
reached
141.7
quadrillion
British
thermal
units
(Btu)
in
2021,
compared
to
the
U.S.’s
95.7
quadrillion
Btu.

While
the
U.S.
still
leads
in
per
capita
energy
production,
China’s
rapid
growth
and
massive
investments
in
this
sector
underscore
the
urgent
need
for
a
strategic
reassessment
of
energy
and
technological
policies
to
maintain
a
competitive
edge.
Energy
is
at
the
core
of
the
reshoring
plans
proposed
by
both
the
Biden
and
Trump
administrations,
and
naturally,
the
cheaper
and
more
robust
the
energy
infrastructure,
the
better
positioned
American
Bitcoin
miners
will
be
in
the
global
market.

Beyond
energy
considerations,
Bitcoin
mining
is
emerging
as
a
powerful
force
for
economic
revitalization
of
rural
areas
hit
hard
by
globalization
and
the
offshoring
of
American
industry.
According
to
CoinShares,
in
2023,
U.S.
Bitcoin
mining
operations
generated
$2
billion
in
revenue,
a
figure
that
represents
3%
of
the
American
iron
and
steel
industry’s
output.
This
comparison
underscores
the
growing
economic
significance
of
this
nascent
sector.
In
just
five
years,
the
industry
has
created
substantial
employment
opportunities.
According
to
internal
estimates,
direct
employment
in
U.S.
Bitcoin
mining
has
grown
to
approximately
1,700
jobs,
doubling
over
the
past
two
years.
When
considering
indirect
employment,
PwC
estimates
the
figure
rises
to
around
11,000
jobs
nationwide.

Neo-Keynesian
Interventionism

A
more
realistic
strategy
is
the
state
intervention
approach.
This
method,
implementable
within
a
single
presidential
term,
would
involve
recognizing
Bitcoin
as
a
strategic
asset
aligned
with
U.S.
interests.
Key
policy
changes
could
include
eliminating
capital
gains
tax
on
Bitcoin
transactions
(currently
at
20%
for
long-term
holdings)
and
mining
equity,
offering
tax
efficient
loan
facilities
to
miners,
and
abolishing
the
21%
corporate
income
tax
rate
for
mining
operations.

Designating
Bitcoin
mining
as
critical
national
infrastructure
could
transform
the
American
approach
to
grid
management.
Bitcoin
miners,
with
their
ability
to
rapidly
adjust
power
consumption,
can
act
as
a
dynamic
buffer
for
the
electrical
grid.
During
peak
demand
periods,
miners
can
swiftly
reduce
their
operations,
redirecting
power
to
essential
services.
This
flexibility
is
particularly
valuable
as
the
U.S.
integrates
more
intermittent
renewable
energy
sources
like
wind
and
solar.

By
offering
tax
incentives
for
participation
in
grid
stabilization,
it
can
become
economically
attractive
for
miners
to
operate
in
the
U.S.
while
simultaneously
enhancing
the
grid’s
resilience.
The
Department
of
Energy
estimates
that
data
centers,
including
cryptocurrency
mining
operations,
could
provide
up
to
2
gigawatts
of
demand
response
capacity
by
2030.
This
strategy
creates
a
win-win
scenario:
grid
operators
gain
a
powerful
tool
for
network
management,
while
miners
receive
economic
benefits
that
could
boost
U.S.
competitiveness
in
global
Bitcoin
production.

Laissez-faire
Bitcoin

The
third
strategy
is
the
free
market
approach.
While
slower
to
implement,
potentially
taking
decades
to
fully
materialize,
this
method
could
have
far-reaching
positive
effects
on
American
prosperity.
This
approach
centers
on
recognizing
the
free
choice
of
money
as
a
fundamental
right
and
involves
massive
deregulation
of
the
power
generation
industry,
removal
of
energy
policy
barriers,
and
elimination
of
manufacturing
obstacles.

Consider
that
the
average
industrial
electricity
rate
in
the
U.S.
is
currently
7.74
cents
per
kilowatt-hour
(as
of
March
2024).
By
removing
regulatory
barriers
and
fostering
competition,
this
cost
could
potentially
be
driven
down
significantly,
making
U.S.-based
mining
operations
far
more
profitable
than
their
global
counterparts.

Additionally,
this
approach
would
advocate
for
significant
reductions
in
capital
gains,
income,
and
corporate
taxes.
The
current
combined
federal
and
state
corporate
tax
rate
in
the
U.S.
averages
25.1%.
A
substantial
reduction
could
unleash
a
wave
of
investment
and
innovation
in
the
Bitcoin
mining
sector.

Crossroads

The
United
States
stands
at
a
digital
crossroads.
While
100%
Bitcoin
mining
dominance
is
a
lofty
goal,
the
pursuit
itself
offers
a
golden
ticket
to
national
renewal.
Imagine
revitalized
rural
areas
humming
with
high-tech
activity,
America
leading
the
world’s
first
truly
digital
commodity
(after
oil
and
natural
gas),
and
an
energy
revolution
fueling
a
new
era
of
industrialization.

This
isn’t
just
about
Bitcoin;
it’s
about
mining
the
foundations
of
21st-century
economic
power.
By
reshoring
critical
supply
chains,
from
chips
to
ASIC
miners,
the
U.S.
isn’t
just
creating
jobs
—
it’s
securing
technological
independence.

The
potential
economic
benefits
are
substantial.
Projections
suggest
that
if
the
U.S.
can
capture
90%
of
the
global
Bitcoin
mining
market
by
2028,
it
could
contribute
$30.6
billion
to
GDP
—
representing
1.2%
of
the
projected
U.S.
GDP.
This
includes
both
the
direct
impact
of
$10.2
billion
in
Bitcoin
mining
revenue
and
an
estimated
$20.4
billion
in
indirect
economic
activity.
Additionally,
the
industry
could
support
over
54,000
total
jobs
nationwide.

The
choice
is
clear:
watch
from
the
sidelines,
or
lead
the
charge.
Whether
through
government
intervention
or
free-market
innovation,
the
path
America
chooses
will
shape
its
energy
future,
technological
leadership,
economic
destiny,
and
global
dominance.
In
the
race
for
digital
supremacy,
Bitcoin
mining
isn’t
just
an
economic
opportunity.
It’s
a
strategic
imperative.

Source:

CoinShares

Image
source:
Shutterstock