Donald Trump’s promises at the Bitcoin Conference might be pipe dreams
Research analyst at BestBrokers said Donald Trump’s promise to ensure every crypto is mined, minted, and made in the US is impossible to achieve. The presidential aspirant made this promise during his speech at the just concluded Bitcoin Conference in Nashville.
While some view Trump’s speech as a positive sign of his support for cryptocurrencies, others argue that his promises are unrealistic and merely a strategy to attract voters.
Bitcoin decentralization makes it impossible for all BTC to be mined in the US
Alan Goldberg, a crypto analyst at BestBrokers, argues that Trump’s commitment to having all Bitcoin mined in the US might appeal to American Bitcoin enthusiasts but is practically unattainable. Goldberg explains that Bitcoin’s decentralization and the global spread of mining operations make this promise impossible. He adds that centralizing Bitcoin mining in the US would undermine the cryptocurrency’s key advantage over traditional financial systems.
He wrote:
“The significant economic and energy resources required for large-scale mining are spread across various countries, making it impossible to consolidate all crypto activities within the U.S. without causing major disruptions and inefficiencies in the global market.”
Goldberg also points out that the US power grid cannot support all Bitcoin mining demands due to competing needs, such as those from artificial intelligence and electric vehicles. Currently, the US consumes 37.9% of the 384.48 gigawatt-hours (GWh) of electricity used daily for Bitcoin mining, equating to 53 terawatt-hours annually—more than the total energy usage of over 75% of countries worldwide.
Similarly, independent journalist LOla L33tz contends that Trump views Bitcoin merely as a means to bolster the US dollar’s global influence. She argues that a Trump presidency may not uphold transactional freedom or support open-source development.
Trump’s speech boosts the crypto market
Despite concerns about the feasibility of Trump’s proposals, many see his speech as outlining a clear vision for the sector. Trump aims to establish the US as the global crypto hub, reinforcing its economic and political dominance.
Trump’s plan includes removing Gary Gensler as Securities and Exchange Commission chair, designating Bitcoin as a national reserve asset like gold, and ensuring the US retains all its Bitcoin. Additionally, he has promised to commute Ross Ulbricht’s sentence and oppose the development of a Central Bank Digital Currency (CBDC) in the US.
Additionally, the Republican presidential candidate leveraged the Bitcoin event to appeal to voters and solicit donations from the sector. This is unsurprising considering cryptocurrency has become a key issue for Republicans, with Trump alleging that the Democratic Party and its potential candidate, Vice President Kamala Harris, oppose crypto.
Following the speech, Bitcoin’s value surged by over 3%, surpassing $70,000 on some exchanges today. Other large cryptocurrencies, such as Ethereum and Solana, saw nearly 4% increases, with Binance-backed BNB, XRP, and others also recording notable gains.
