Can Donald Trump Truly Make US The Crypto Capital?

Highlights
- 95% of Bitcoin is already mined, limiting the feasibility of Donald Trump's "Made in the USA" Bitcoin pledge.
- US miners contribute less than 50% of global Bitcoin computing power, highlighting the dominance of international operations.
- Most Bitcoin mining equipment is sourced from China, posing challenges amid potential trade policies under Trump's administration.
President-elect Donald Trump’s promise to ensure all remaining Bitcoin is “made in the USA” has sparked widespread debate. Announced during a meeting with crypto mining executives, the pledge reflects a shift in Trump’s stance on digital currencies. Despite this commitment, experts caution that achieving this goal may be unattainable due to various reasons discussed in this article.
Is Donald Trump Bitcoin Strategy Achievable?
Recent data indicate that 95% of Bitcoin has already been mined, leaving only a small fraction available for production. This reality makes President-elect Donald Trump’s promise to produce Bitcoin exclusively within the United States highly challenging. Bitcoin mining operates on a decentralized network, meaning no single country or entity can control the process.
Additionally, global mining operations dominate the industry, with US crypto miners contributing less than 50% of the total computing power. This disparity underscores the difficulty of centralizing Bitcoin production to a single nation. The highly competitive nature of the sector further complicates efforts to shift the balance entirely to domestic players.
More so, these challenges erupt even as Japan rejects Bitcoin for national reserves, prioritizing stability in its foreign exchange strategy. The government highlighted BTC price volatility and misalignment with traditional financial systems.
Interestingly, this cautious stance contrasts sharply with other Japanese private entities. For example, Japan’s MicroStrategy, Metaplanet, invested ¥9.5 billion to purchase 617 BTC, raising its total holdings to 1,761.98 BTC. This move boosted its Bitcoin treasury by 56% amid a price dip. The company reported a 309% yield on its BTC holdings in Q4, with CEO Simon Gerovich emphasizing Bitcoin’s role in safeguarding capital against the declining Yen.
Global Competition and Equipment Reliance Challenges
Bitcoin mining is increasingly driven by international players with deep resources, such as miners in Africa, Asia, and the Middle East. These regions often benefit from lower energy costs and fewer regulatory barriers, providing an edge over US operations. For example, countries like Ethiopia and Argentina offer access to cheap hydropower and stable revenue streams in US dollars. This boosts their competitiveness in the market.
Adding to the challenge, most Bitcoin mining equipment is manufactured by Chinese companies, particularly Bitmain. A trade war or tariff policies under Donald Trump’s administration could raise the cost of importing essential machinery, creating additional obstacles for US crypto miners.
However, despite the ambitious pledge, Donald Trump has found support from several US-based mining companies, such as CleanSpark Inc. and Riot Platforms Inc. These companies anticipate that his administration will reduce environmental regulations and increase industry support. However, some US miners are even turning to overseas partnerships to mitigate rising energy costs at home.
For instance, MARA Holdings Inc. has announced a joint venture with an Abu Dhabi sovereign wealth fund to establish one of the largest mining farms in the Middle East. While Donald Trump’s commitment to making Bitcoin “made in the USA” aligns with his broader economic goals, it faces structural and logistical barriers.
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