Regulation
Experts debate Trump’s vision to mine all Bitcoin in the US
Former President Donald Trump’s recent statement that all Bitcoin would be made in the United States has sparked debate within the crypto community.
While some Bitcoin enthusiasts initially welcomed the idea, many experts say Trump’s stance misunderstands Bitcoin’s fundamentals.
Trump’s Bitcoin vision sparks debate
Laura Shin, crypto journalist raised a critical question. She asked why Bitcoiners were celebrating Trump’s statement on making all Bitcoins in the United States.
She pointed out that this could create jurisdictional risk, making Bitcoin less decentralized and more vulnerable to attacks. Bitcoin advocate and sustainability consultant Margot Paez echoed this sentiment.
“We do not want centralization of hashrate in the United States. This should be obvious. Please get it together,” she said.
Learn more: How much electricity does Bitcoin mining use?
Congressman Sean Casten also Express his disagreement with Trump’s statement. In a series of tweets, Casten highlighted the practical limitations of Bitcoin. It highlights the energy-intensive nature of Bitcoin mining and its limited usefulness in modern banking.
However, Nic Carter, partner at Castle Island Ventures, disagrees with Casten’s “correction” to Trump’s views. Even though Carter acknowledged that there is no need to mine Bitcoin in the United States, he believed that Casten’s criticism of Trump’s statement was overblown and warranted a response.
Several crypto industry figures shared their views on Trump’s statement. Alex Thorn, head of research at Galaxy Digital, said Trump’s statement could be seen as a geopolitical signal. This could potentially encourage other countries to seriously consider Bitcoin mining.
“Some believe that competition will increase, which will ultimately accelerate and consolidate global adoption. If your geopolitical adversaries (or allies, for that matter) think it’s important, you need to play along too, otherwise you risk falling behind,” he said. said.
Matthew Pines, National Security A researcher at the Bitcoin Policy Institute further highlighted the potential geopolitical implications of Trump’s stance. Pines suggested that depending on the scale and execution of Trump’s Bitcoin-related policies, the global reaction could range from indifference to significant geopolitical shifts.
“I don’t know how a Bitcoin-For-America/America-For-Bitcoin policy position will interact with potential political and geopolitical instability in the United States. [Treasury] market, but it could get very interesting and very complicated, very quickly,” he said. wrote.
Amid this heated debate, prominent crypto investor Mike Alfred expressed a mix of support and skepticism. He initially supported Trump’s statement, but later acknowledged the broader implications.
“Yes, we know. But it’s the mind that matters more than the esoteric details,” Alfred added.
Pro-crypto movements: electoral strategy or real change?
Trump’s announcement followed a series of increasingly pro-crypto statementsincluding is committed to defending the right to self-custody and accept crypto campaign donations. Despite this support, Trump still had an inconsistent stance on Bitcoin. For example, in July 2019, Trump publicly declared that he is “not a fan of Bitcoin and other cryptocurrencies”, which, according to him, “are not money and whose value is very volatile and based on emptiness”.
Additionally, Trump’s poor reputation among world leaders further complicates the potential impact of his pro-Bitcoin stance. It remains to be seen whether Trump’s statements will result in tangible policy changes or simply serve as political rhetoric aimed at his base.
However, it is important to note that Trump’s support for the crypto industry arrives strategically as president Joe The Biden administration is taking a tougher approach, particularly towards the Bitcoin mining industry. A significant example is that closure of Chinese crypto mining company MineOne Partners. BeInCrypto reported that the Biden administration mandated MineOne to vacate and sell its property near a Wyoming air base, which hosts intercontinental ballistic missiles, calling the company a threat to national security.
Learn more: Crypto regulation: what are the advantages and disadvantages?
US presidential candidates’ chances of winning the 2024 elections. Source: Polymarket
Data from crypto-based prediction markets Polymarket shows that Trump has a 56% chance of winning the November presidential election. Meanwhile, Biden has only a 35% chance.
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