- Trump made several crypto-friendly promises during the Bitcoin conference in Nashville, including plans to create a national Bitcoin reserve.
- After meeting with crypto mining executives at Mar-a-Lago in June 2024, Trump shifted from sceptic to supporter, making a bold but impractical promise to ensure all Bitcoin mining occurs within US borders.
- Experts indicate US-exclusive Bitcoin mining faces significant challenges since US-based miners account for less than 50% of global mining activity.
- Meanwhile, regions like Asia, Africa and the Middle East continue expanding their operations.
Donald Trump has made quite a few promises that had the crypto industry excited. Speaking during the Bitcoin conference in Nashville, Trump said he would establish a national Bitcoin reserve and fire Gary Gensler, the Chair of the Securities and Exchange Commission (SEC) on “day one” of his presidency.
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We know now that he won’t be firing Gensler, as the most disliked man in crypto announced in late November that he is stepping down as chair on January 20.
Bitcoin Made in The USA?
And there’s another promise Trump made that seems difficult to keep. In June of 2024, Trump made a pledge on his Truth Social to support the crypto industry after meeting with crypto miner executives at Mar-a-Lago.
This marked a shift from being a sceptic to becoming an ally of the industry, when Trump said he wants “all remaining Bitcoin to be made in the USA”.
It’s not clear if Trump actually meant this to be taken literally or if it was just a…token of support, but it’s certainly not something one person would be able to decide and implement by themselves – given the decentralised nature of BTC.
According to a Bloomberg report, even if Trump tried, it wouldn’t be as straightforward as the president-elect may have hoped it to be.
The report highlighted that, while billions flow into Bitcoin mining in the United States, US-based miners account for “well below 50%”. Experts believe the US mining industry wouldn’t have the capacity to run the entire network, with mining equipment sales ratcheting up in Asia, Africa and the Middle East.
Chief executive of Synteq Digital, Taras Kulyk, told Bloomberg that “there is huge growth coming up in a few different markets”.
There’s also China of course, which has seen an increase in mining activity. Elsewhere, Kazakhstan and Russia are also seeing something of a renaissance in crypto mining, with the latter loosening its regulatory stance on crypto.
Trump Wants US to Be “Ahead”, Especially of China
The report also highlights cheap energy in Africa, mainly from hydropower, as a factor for higher profit margins compared to markets with higher energy costs.
And then there’s the potential for a trade war with China, which produces most of the mining equipment, which would make mining even more costly.
Related: Crypto Giants Rally Behind Trump, Pledge Millions to Inaugural Festivities
While it’s unlikely that Trump can deliver on this particular promise, he has certainly caused a lot of euphoria in the crypto sector. After all, Bitcoin has rallied since Trump was re-elected on November 5, making a new all-time high on December 18 at US$108,268.45 (AU$174,032.63).
While that rally has slowed for now, many in the industry are optimistic for 2025 and beyond. Especially given the recent hints by Trump that his administration has ambitious plans for Bitcoin and Co, telling CNBC:
We’re gonna do something great with crypto because we don’t want China, or anybody else […] but others are embracing it, and we want to be ahead.
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