Key Points:
- President-elect Trump’s promise to ensure all remaining Bitcoin is mined in the U.S. faces significant challenges.
- While the U.S. Bitcoin mining industry has expanded into a multi-billion-dollar sector, it contributes less than 50% of the network’s computing power.
According to Bloomberg, one of the more daunting campaign promises from President-elect Trump will be to ensure all remaining Bitcoin is “made in the USA”.
Read more: Trump Inaugural Fund Receives Huge Donation From Crypto Industry
President-elect Trump’s Pledge to Mine Bitcoins Meets Global Challenges
The pledge came in June on his Truth Social platform after he met with cryptocurrency mining executives at Mar-a-Lago, a turn from crypto scepticism to staunch industry support.
The mining of Bitcoin works by high-tech data centres, solving complex calculations to verify blockchain transactions on a decentralized network, and it is truly impossible for any one country to dominate. The contest has gone global, pitching Russian oligarchs against the royals of Dubai and Chinese investors in Africa to jockey for a share in the billions that the industry generates annually.
While the U.S. Bitcoin mining sector has grown to become a multi-billion-dollar industry accounting for less than 50% of the network’s cumulative computing power, analysts say reaching Trump’s goal would be impracticable. About 95% of Bitcoin’s capped supply of 21 million has already been dug up and the limit is expected to be reached in about 100 years.
U.S. Bitcoin Mining Industry Expands but Falls Short of Majority Control
American miners, like CleanSpark and Riot Platforms, also supported President-elect Trump, anticipating lighter regulations and less environmental oversight. They also seek to dampen overseas competition and roll back Biden-era policies they view as restrictive. During the last election cycle, Trump’s crypto cheerleading helped him lock down $135 million in campaign donations from the industry.
In fact, despite U.S. expansion, international miners continue to gain ground, buoyed by economic sanctions and inflation in emerging markets. Major mining service providers say global mining power is fragmented but growing.
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