Donald Trump‘s campaign promise to bring all Bitcoin BTC/USD mining operations back to the United States faces considerable obstacles, despite his newfound support for the cryptocurrency industry.
This pledge, made following discussions with leaders in the crypto mining field, symbolizes Trump’s shift from a skeptic to a champion of digital assets.
What Happened: Experts in the field acknowledge that the decentralized structure of Bitcoin renders such a goal impractical, if not impossible, according to Bloomberg.
While the concept might serve as a show of support, the reality is that Bitcoin mining is a highly competitive, worldwide endeavor.
New, well-funded entities from various regions, including Russian, Middle Eastern and African players, are actively expanding their operations to capture a share of the considerable revenue generated by this activity.
These groups often have access to cost-effective energy sources and substantial capital, which are essential for successful large-scale mining.
While most of the Bitcoin supply has been mined, these are still set to be mined over the next century, meaning competition will be fierce.
While the United States has seen growth in Bitcoin mining, the overall computing power produced by domestic miners is below half of the total global network.
Industry analysts stress that it’s not feasible for US companies to solely control and power the entire Bitcoin system.
Detailed data on the geographical distribution of mining power is scarce, but information from service providers like Luxor indicates significant overseas expansion.
Also Read: 2025 Crypto Policy Preview Warns: Clarity Will Come From Congress, Not The SEC
Why It Matters: Bitcoin mining companies in the U.S. have generally welcomed Trump's backing.
They are hoping for less strict environmental rules and a reduction in overseas competition, and the industry contributed a significant amount to his last campaign.
However, US sanctions against other nations, inflation in emerging economies and cheaper energy outside of the US have accelerated the growth of operations overseas.
There is a large increase in mining operations across Eastern Europe, Asia, Africa and the Middle East.
China is seeing a revival of mining activity after previously banning it, and Russia has recently adopted a more open stance.
In Africa, the availability of affordable hydro power is creating hubs in regions like Ethiopia.
For some South American countries, the US dollar value from mining provides a much-needed hedge against rampant local inflation.
Even US-based miners are expanding their operations abroad, due to increasing domestic electricity prices.
MARA MARA Holdings, for instance, has partnered with a Middle Eastern firm to construct a large mining facility in Abu Dhabi.
It's also important to note that US operations offer mining hosting services, where individuals from all over the world can pay to have their mining machines operated to earn Bitcoin.
Trump’s trade policy with China may create complications for US mining companies.
Increased tariffs could potentially drive up the cost of mining hardware, with a large majority of this hardware being produced by Bitmain, and is the largest expense outside of electricity.
Despite these potential issues, many miners seem to believe that the benefits of Trump's overall approach to the industry outweigh any potential drawbacks.
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