During the campaign, US President-elect Trump made a series of ambitious promises, but it is clear that not all of them can be fulfilled. Among them, ensuring that all remaining Bitcoins are "Made in the USA" should be one of the most impossible promises to achieve.
Trump made the promise in a post on his Truth Social account after meeting with a group of cryptocurrency miner executives at Mar-a-Lago in June. These companies have massive, high-tech data centers that facilitate transactions on the blockchain in exchange for payment in Bitcoin or other cryptocurrencies. The meeting was also a key moment in Trump's transformation from a cryptocurrency skeptic to a supporter of the industry.
However, industry insiders generally believe that Trump's aforementioned commitment is more of a symbolic support for the cryptocurrency industry and is virtually impossible to implement in practice. This is because blockchain is a decentralized network with no one controlling or being prohibited from participating in the process.
Moreover, from a practical standpoint, as large-scale operations emerge worldwide to capture a share of the industry’s hundreds of billions of dollars in annual revenue, competition in the industry is becoming increasingly fierce. Russian oligarchs and the Dubai royal family are among the latest 'entrants'.
On the other hand, while the Bitcoin mining industry in the U.S. has rapidly developed in recent years and has become a multi-billion dollar industry, analysis shows that the computing power of domestic miners is still far below half of the global total. Therefore, it is almost impossible for American companies to fully support the entire Bitcoin network.
Ethan Vera, COO of Seattle-based Luxor Technology, which provides software and services to miners, stated, "This is Trump-like rhetoric, but it is definitely not reality."
Although there is no public data to accurately delineate the sources of computing power in different regions globally, large cryptocurrency mining service providers like Luxor Technology often have a good understanding of the composition of computing power. They obtain more specific information about mining locations through software that aggregates computing power, thereby increasing miners' chances of earning Bitcoin rewards.
Analysts also point out that U.S. economic sanctions and severe inflation in some emerging economies are prompting overseas miners to further expand their businesses.
Taras Kulyk, CEO of Synteq Digital, said, "Several different markets are experiencing tremendous growth." The company is one of the largest brokers of computers specifically for Bitcoin mining. Kulyk noted that demand is increasing in Eastern European countries like Kazakhstan, "Sales to Asia, Africa, and the Middle East are all on the rise."
Finally, some analysts point out that Trump's policies may also pose challenges for American miners, as his trade policies may lead to increased costs for Bitcoin mining equipment. For miners, electricity and equipment are the two largest expenses. However, for the overall cryptocurrency market, the benefits of Trump outweigh the downsides.
"Trump may be the best thing for Bitcoin mining; he supports energy and economic growth," Kulyk added.
