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Trump’s Bid to Centralize Bitcoin Mining in the US Raises Questions and Concerns

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In a recent statement, former President Trump expressed his desire to have all remaining bitcoin mined in the US. This bold move has sparked debate and raised questions about the feasibility and implications of such a goal. While the idea of centralizing bitcoin mining in the US may seem appealing, it is crucial to examine the logistics and potential consequences of such an endeavor.

According to research by 3iQ, the US currently boasts the highest hash rate of a single nation at 38%. However, achieving 100% of the global hash rate is logistically impossible, given the decentralized nature of the bitcoin blockchain. Moreover, the US was the primary beneficiary of China’s ban on crypto mining in 2021, which led to a significant increase in hash rate. With the total supply of bitcoin set to be mined by 2140, the cost and logistics of mining all remaining bitcoin exclusively in the US are prohibitive.

Despite the challenges, there are ways that increased focus on bitcoin mining can benefit US policy decisions. For instance, a focus on bitcoin mining necessitates a more objective conversation about US energy infrastructure and policy. This could lead to increased investment in energy production, LNG terminals, and renewable energy projects, ultimately reducing the cost of electricity for miners.

Moreover, the debates surrounding cryptoassets have the potential to drive greater innovation in the sector. As policymakers write and debate policy actions, it is crucial to foster innovation while safeguarding privacy and investor protection.

The increasing importance of cryptoassets in the 2024 Presidential race highlights the critical role these assets will play in the future. Stablecoins, products, and services marketed by large TradFi institutions, nation-states actively buying and establishing strategic bitcoin reserves, and the potential for central bank digital currencies (CBDCs) have all emerged as dominant players in policy debates.

As the conversation around cryptoassets continues to evolve, it is essential to have a vigorous discourse and analysis of the role these assets will play in shaping the future of finance and commerce.

Source: Crypto Mining News - Bing

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