Make America Mine Again: How Donald Trump’s Plan for U.S. Bitcoin Dominance Could Trigger a New Digital Gold Rush

As a passionate crypto investor, I’m eagerly pursuing the ambitious goal of strengthening America’s Bitcoin Mining Industry. This endeavor, though tough, has the power to dramatically transform our nation’s technological and economic terrain. It’s crucial that we, regardless of political leanings, view this as a shared objective. Whether you identify more with Democratic or Republican ideologies, the prospect of job creation, energy advancements, and technological superiority makes this a concern that should resonate deeply with us all.

Transforming America’s Energy Wealth

As a long-time observer of global energy trends, I have witnessed the remarkable growth and transformation of the United States’ energy sector over the years. With my roots deeply entrenched in the heartland of America, I’ve seen firsthand the vast resources that lie beneath our soil and the innovative technologies being developed to harness them. The abundance of oil, natural gas, and renewable energy sources like solar, wind, and even nuclear power, has positioned the U.S. as a global leader in energy production.

Despite the U.S.’s ongoing lead in per-capita energy production, China’s swift expansion and significant investments in this field highlight the importance of reevaluating our energy and technological strategies to preserve a competitive advantage. Energy is crucial for the return-to-production plans advocated by both the Biden and Trump administrations. Consequently, the more affordable and durable the energy infrastructure becomes, the more favorably situated American Bitcoin miners will be in the global market.

In terms of economic impact, Bitcoin mining is increasingly recognized as a key driver for the revival of economically struggling rural regions, following trends like globalization and outsourcing of U.S. manufacturing. Our findings show that in 2023, U.S. Bitcoin mining operations yielded about $2 billion, which equates to around 3% of the iron and steel industry’s output, highlighting the sector’s growing economic relevance. Over a span of five years, this relatively new industry has generated numerous job opportunities. Based on our internal data, direct employment in U.S. Bitcoin mining stands at approximately 1,700 jobs, nearly doubling over the past two years. When you take into account indirect employment, PwC estimates the number to be around 11,000 nationwide.

The effects of mining go well beyond the actual mining activities, with each mining job creating an indirect impact on 6.4 more jobs in other parts of the economy. This ripple effect covers various industries like transportation, construction, maintenance, electrical engineering, and cybersecurity. Therefore, Bitcoin mining isn’t solely a technological innovation; it could also serve as a vital economic lifeline for communities looking to revitalize their economies following periods of industrial decay.

The United States finds itself at a crucial juncture regarding Bitcoin mining, with three distinct paths that could lead to dominance in this field. These paths span from aggressive control to a more organic market development. Each choice has significant ramifications for America’s industrial future and international influence. Let’s delve into these strategies and evaluate their potential impact on America’s technological and economic landscape.

Let’s discuss the “I Eliminated the Competition in Bitcoins” tactic. This aggressive strategy resembles a scene from an action-packed movie, where the U.S. would swiftly shut down all non-American Bitcoin mining operations, leaving them powerless faster than one can utter “global crisis.” Indeed, it could dominate the Bitcoin market within weeks, but at the potential price of igniting World War III. It’s an ingenious plan… if your aim is to mine Bitcoins in a post-apocalyptic world where trading relies on bottle caps as currency. Needless to stress, we’re merely bringing this idea up for its amusing and impractical aspects.

Neo-Keynesian Interventionism

A more practical approach might be labeled as government intervention. This tactic, capable of execution during a single presidential term, would entail acknowledging Bitcoin as a strategic asset in line with U.S. objectives. Notable policy adjustments could encompass the exemption of capital gains tax on Bitcoin transactions (currently at 20% for long-term holdings) and mining activities, providing tax-efficient loan options to miners, and abolishing the 21% corporate income tax rate for mining ventures.

Labeling Bitcoin mining as crucial national infrastructure might revolutionize how we manage our electrical grid in the U.S. Bitcoin miners, capable of swiftly adjusting their power usage, can serve as a flexible buffer for the power grid. During periods of high demand, miners can quickly scale back their operations, thereby freeing up electricity for essential services. This adaptability becomes especially useful as the U.S. incorporates more intermittent renewable energy sources such as wind and solar power into its energy mix.

As an analyst, I propose that by implementing tax incentives for grid stabilization participation, we can create an economically advantageous environment for cryptocurrency miners to operate in the U.S., thereby enhancing our national grid resilience. The Department of Energy predicts that data centers, including Bitcoin mining operations, could potentially offer up to 2 gigawatts of demand response capacity by 2030. Adopting this strategy offers a mutually beneficial outcome: grid operators gain a valuable tool for network management, while miners reap economic benefits that could enhance the U.S.’s competitive position in global Bitcoin production. Instead of striving to improve energy efficiency and mining output concurrently, this approach cultivates a harmonious relationship between Bitcoin miners and our grid, potentially expanding America’s share of global mining operations while bolstering our energy infrastructure.

As someone who has spent years working in the energy sector and witnessing the rapid growth of digital currencies like Bitcoin, I firmly believe that prioritizing energy abundance as a national development goal is crucial for our future prosperity. With my professional background, I have seen firsthand how investing in energy infrastructure can drive economic growth and create new opportunities for innovation.

Laissez-faire Bitcoin

The third strategy is based on the concept of free market economics. Although it may take several decades to fully manifest, its potential benefits for American prosperity could be significant. This approach emphasizes the fundamental right of individuals to make decisions regarding money. It also proposes extensive deregulation in the power generation sector, removing energy policy restrictions, and dismantling manufacturing barriers.

In March 2024, the typical industrial electricity rate in the United States is 7.74 cents per kilowatt-hour. By eliminating regulatory hurdles and encouraging competition, we might potentially lower these costs substantially, making U.S. mining operations significantly more lucrative compared to their international counterparts.

Furthermore, this method proposes lowering substantial taxes such as capital gains, income, and corporation taxes. Currently, the average combined federal and state corporate tax rate in the U.S. is approximately 25.1%. A considerable decrease could stimulate a surge of investment and technological advancement within the Bitcoin mining industry.

Reducing overly high taxes and regulations might make the U.S. an ideal destination for Bitcoin mining on a global scale due to its vast resources and capital, as well as the innovative mindset of its people. This could potentially lead to unprecedented energy surplus, rendering Bitcoin mining elsewhere financially impractical.

Crossroads

The United States finds itself at a significant juncture in the digital sphere. Achieving 100% dominance in Bitcoin mining may seem ambitious, but it presents an opportunity for national revitalization. Visualize once-stagnant rural areas buzzing with high-tech innovation, the U.S. spearheading the world’s pioneering digital commodity (following oil and natural gas), and a revolutionary energy sector driving a new wave of industrial growth.

As a crypto investor, I see this venture as more than just Bitcoin; it’s about digging deep into the roots of 21st-century financial might. By bringing back essential supply chains, from semiconductors to ASIC miners, it’s not merely about creating jobs — it’s about safeguarding our technological sovereignty.

As a researcher, I find myself echoing the concerns of Economist Noah Smith: Should U.S. heavy manufacturing succumb to Chinese competition, our nation’s ability to bolster defense production capacity during war times may be significantly diminished. Interestingly, Bitcoin mining could potentially serve as a key factor in preventing such a scenario. By stimulating demand for affordable, plentiful energy, it has the potential to ignite a resurgence in American manufacturing, preserving our industrial prowess and safeguarding our national security.

The significant economic advantages are clear: If the United States manages to secure 90% of the worldwide Bitcoin mining market by 2028, it could add approximately $30.6 billion to its GDP, equating to around 1.2% of the projected U.S. GDP. This would be a result of both direct gains of about $10.2 billion from Bitcoin mining revenue and an estimated $20.4 billion in related economic activity. Moreover, this sector could potentially create more than 54,000 jobs across the nation.

As a crypto investor, I find myself at a crossroads: I can choose to be a mere spectator, or seize the opportunity to take the lead. The course America takes – whether through government intervention or self-driven innovation – will significantly impact our energy landscape, technological advancements, economic stability, and global influence. In the fierce competition for digital dominance, Bitcoin mining transcends being an economic prospect; it becomes a strategic necessity.

Keep in mind that the opinions stated within this article belong solely to the writer, and may not align with the perspectives of CoinDesk, Inc., its proprietors, or associated entities.