Donald Trump Met with 3 of the Top 5 Bitcoin Mining Companies, Worth 26% of the US’ Total Hash Power
After meeting with multiple Bitcoin mining executives at Mar-a-Lago, Trump said he wants all remaining Bitcoin to be made in the US.
- Trump met with executives from three top Bitcoin mining companies, representing 26% of US hash power.
- Trump wants all remaining Bitcoin mined in the US, viewing it as a defense against CBDCs.
- His vision may prompt a focus on new energy sources for mining, though sustainability is uncertain.
Donald Trump has declared himself a champion of cryptocurrency, expressing strong support for crypto and garnering backing from the community. He recently met with several Bitcoin mining executives and soon after took to social media, stating that Bitcoin mining might be the last line of defense against Central Bank Digital Currencies (CBDCs).
The former US President met with three of the country’s top five Bitcoin mining companies — Riot Platforms, Marathon Digital, and CleanSpark Inc. — representing over a quarter of the total US hash power.
These three companies alone have a combined hashrate of 59.8 EH/s (exahash per second), worth over 26% of the US’s total hash power of 226.94 EH/s. He also met with executives of Terawulf, which has an 8 EH/s.
In addition to announcing his support, Donald Trump stated that he wants the remaining Bitcoin — approximately 1,289,141 BTC, worth $86.8 billion at the time of writing — to be mined in the US.
Donald Trump’s move aligns with the decentralization versus centralization debate, as Bitcoin operates on a decentralized network, whereas CBDCs will be controlled by the government.
Bitcoin Mining vs. CBDCs
When comparing Bitcoin mining to CBDCs, three key benefits stand out: privacy, security, and inflation control.
- Privacy: Bitcoin offers a degree of privacy and anonymity, whereas CBDCs can be directly monitored and controlled by the government.
- Security: Bitcoin holders can use cold wallets to completely control their assets.
- Inflation Control: Unlike the Federal Reserve, which can legally print unlimited amounts of money, Bitcoin has a capped supply of just 21 million, providing a hedge against inflation.
Although the People’s Bank of China emphasizes “controllable anonymity,” according to a paper by John Laband in the Harvard International Law Journal, this anonymity will likely only apply to the individual parties involved in the transaction, while the PBOC will retain full visibility.
According to the CATO Institute, CBDCs could make it easier and faster for the government to freeze assets. The report also noted that governments consider this the “most effective way” to lock someone out of society.
Regarding inflation, Bitcoin’s supply is capped at 21 million, with less than 1.3 million coins left to mine. In contrast, the Federal Reserve printed between $166.5 and $190.5 billion in FY 2023 alone.
Currently, the US holds 37.84% of the world’s total hash power, followed by China, which holds 21.11%.
Image from: Chain Bulletin
For every 210,000 blocks mined, a halving event occurs wherein rewards are halved until all 21 million Bitcoins are mined. The next halving event is expected to occur around March 2028, and with current hash power, it’s estimated that all BTC will be mined by 2140, per Bitbo.
Catering to Bitcoin’s 146.8 TWh Annual Consumption
Bitcoin’s annual energy consumption is 146.8 TWh, just a quarter of the 586 TWh used by the paper and pulp industry. It is also less than the combined energy usage of refrigerators and TVs in the US, totaling 164 TWh annually.
According to CCAF data, Bitcoin’s energy consumption accounts for only 3.7% of the US’s total consumption of 3,979 TWh.
During Trump’s presidency, the government auctioned off over 10 million acres of public land for energy exploration, according to Time.
If elected, Trump’s vision for Bitcoin mining dominance could lead to a focus on developing or allocating energy sources to support the industry. However, it remains to be seen whether he will pursue sustainable energy solutions or continue relying on conventional sources to power Bitcoin mining.
