Trump wants all future Bitcoin to be mined in the US – is that possible?

Bitcoin mining Big business in the US – but how big? And will Donald Trump’s return to the White House make a difference?

President elected last year said– along with many other things pro-crypto pledges— he wanted all remaining coins to be minted on American soil.

Spoiler alert: This will be very difficult, if not impossible.

Created by Data TheMinerMag shows US miners currently account for around 40% of the mining hashrate, which is more than any other country.

But experts said Deciphering It is unlikely that the pro-crypto commander will transfer the remaining 60% of Bitcoin mining hashrate to the states.

“I don’t think it’s possible,” said Matthew Siegel, head of digital asset research at VanEck. Deciphering. He added that mining operations around the world should be phased out and replaced by operations in the United States.

And CJ Burnett, Chief Revenue Officer at Compass Mining, a company that provides Bitcoin Mining hosting and other services, said: Deciphering Although his company is happy about Trump’s “enthusiasm” for the industry, moving all mining operations to the states would be impractical.

“The US doesn’t have the electrical infrastructure, physical computing hardware (mining machines) and low enough energy costs to be the only place to mine all the remaining Bitcoin,” he said.

“Ultimately, Bitcoin mining remains a globally distributed network driven by market economies, energy availability and regulatory landscapes around the world,” Burnett added.

for a Bitcoin For the network to function as a payment network, miners work to add blocks full of transaction information. blockchain.

As Bitcoin has grown since its launch in 2009, it has become a very large and very secure computer network. Adding new blocks is much more difficult, and mining now has to use a lot of energy to do so.

Part of the nature of Bitcoin is that it is decentralized, so anyone can participate in running the network. As a result, miners are scattered around the world, but set up shop in locations where large operations provide favorable (ie, cost-effective) conditions to support mining.

Other mining hot spots include Kazakhstan, Russia and Canada.

The US has become the leader in Bitcoin mining after China launched 2021 crackdown on industry by pushing miners elsewhere. According to data from TheMinerMag, 20 US state-owned mining companies mined 3,794 bitcoins (worth approximately $366 million at the time of writing) in November alone.

And industry giants believe in Trump’s presidency.

“Bitcoin can be mined more and more in the US, and the improved US policies will certainly make it more attractive for miners to build it in the US, thus accelerating (the industry’s) growth,” said Roe Shirol, chief business officer of mining firm Blockmetrix. Deciphering.

Hive Digital Technologies executive chairman Frank Holmes, meanwhile, said “support for Bitcoin innovation” is coming under the Trump presidency.

And Burnett added that the shift in sentiment around Bitcoin and the mining industry was a “reveal” with the Republican victory.

So far, the results have been remarkable: shortly after the November 6 election, Bitcoin gained momentum following Trump’s victory. The biggest coin currently trading The coin jumped almost 1% in the last 24 hours to above $98,000, CoinGecko data shows. On December 17, it reached an all-time high of $108,135.

There are many people in the broader crypto industry now pending A favorable business climate in the US compared to the regulatory onslaught during the administration of Democratic President Joe Biden.

Edited by Stacey Elliott