Trump’s Appeal to Bitcoin Miners Is a Wakeup Call for Crypto to Stay Apolitical

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At his Mar-a-Lago resort in Florida, Trump held a conversation with Bitcoin Magazine CEO David Bailey in the presence of top executives from bitcoin mining companies CleanSpark, Riot Platforms, and Marathon Digital. Following this discussion, Trump shared the news on his Truth Social media page.

Recent pronouncements supporting cryptocurrency by a former U.S. president have elicited varied responses from crypto enthusiasts. Some are encouraged by his defense of self-custody, acceptance of campaign donations in crypto, and protective stance against regulatory scrutiny. Others remain skeptical due to the polarizing nature of this president, whose approval ratings never exceeded 50% during his tenure.

It’s debatable that this is the first occasion since 2019, when Trump expressed his dislike for Bitcoin, that he was incorrect about cryptocurrency. The trend toward onshoring bitcoin mining has existed since China prohibited the practice in 2021. However, if we take Trump’s statement at face value, advocating for all bitcoin miners to be situated in a specific area might reveal a lack of understanding about Bitcoin’s nature, function, and significance.

Geopolitical signal?

Yet, it’s important to note that this is only one perspective. Many other viewpoints exist as well. For example, Alex Bergeron from Bitcoin Magazine posits that President Trump’s statement carries significant weight for the value of cryptocurrencies.

“It is crucial that the most influential figure in the world sends a clear message to all key players regarding the geopolitical significance of Bitcoin mining. This approach would encourage widespread mining participation and contribute to the network’s decentralization,” Bergeron explained to Margot Paez, Bitcoin Policy Summit co-founder.

As a researcher studying the crypto industry, I would caution against concentrating hashrate production in a single country, particularly one with a history of unfavorable politics towards cryptocurrencies. For example, the Biden administration has suggested imposing a substantial 30% tax on Bitcoin mining.

As a cryptocurrency analyst, I would assert that it’s highly unlikely for the Bitcoin hashrate to become centralized in a single region due to the global presence of Bitcoin miners. Even if attempts are made by powerful entities, such as a president, to impede mining activities, the widespread community of Bitcoin enthusiasts across the world makes this a challenging feat.

See also: Why, for Some, Crypto Is a Defining Political Issue | Opinion

The essential issue is whether the US’s efforts to boost bitcoin mining through government assistance or incentives could prompt other nations to follow suit. Historically, international leaders tend to take cues from the US. However, given Trump’s weak position in the global community, this proposal might not be persuasive.

It’s uncertain if this political campaign will significantly impact bitcoin mining, given Trump’s ambiguous stance on cryptocurrencies. His pro-crypto remarks might be seen as mere appeasement or genuine admiration. However, Trump is a contentious figure within the bitcoin community, and not just among progressives.

Lying with dogs

As a crypto investor, I understand the reservations some people have about getting too cozy with politicians when it comes to Bitcoin. Frankly, I find it embarrassing to associate with anyone who may have questionable motives or a large ego like Trump’s. Bitcoin writer and privacy advocate L0la L33tz articulated this perspective beautifully in an essay they wrote. They argued that politicians cannot be trusted due to their history of broken promises. Trump, for instance, failed to deliver on many of his previous campaign promises. Furthermore, Bitcoin doesn’t necessarily need political support to thrive; it operates independently and relies on its community and technological foundations.

See also: The Biden Administration Is Easing Up on Crypto (a Vibes Analysis) | Opinion

“When your morals can be bought, you are not a patriot – you are a sell out,” L33tz wrote.

As a long-term crypto investor, I believe that L33tz’s consistent stance aligns well with Bitcoin’s core philosophy. Moreover, from an industry perspective, it seems beneficial to hold this viewpoint in the long run.

As a crypto investor, I understand the allure of aligning with the political party that garners the most support in our industry. However, I believe following the lead of someone like Marvin Ammori from Uniswap, who advocated for neutrality and apolitical stance during his debate with a prominent Trump supporter at Consensus 2024 last month, is a wiser approach for me personally.

As a researcher studying the intersection of technology and society, I’ve previously expressed my belief that due to its novelty and high profile, cryptocurrencies are bound to become a contentious topic for both advocates on the right and critics on the left. However, is this a desirable outcome?