Donald Trump’s “Made in USA” Bitcoin pledge is facing the harsh reality of blockchain dynamics. In June, the former president expressed his desire for all remaining Bitcoin to be mined within the United States on his social media platform, Truth Social.
This announcement followed a significant meeting at Mar-a-Lago with prominent U.S. crypto miners.
“VOTE FOR TRUMP! Bitcoin mining could serve as our last defense against a Central Bank Digital Currency. President Biden’s disapproval of Bitcoin only benefits countries like China, Russia, and the Radical Communist Left. We aim to have all remaining Bitcoin MADE IN THE USA!!! This initiative will contribute to our energy dominance!!!” Trump stated.
However, the fundamental nature of Bitcoin’s network disregards geographical boundaries. Being decentralized means that no single entity, including Trump, has control over it—neither China nor the miners themselves.
With 95% of Bitcoin already in circulation and the remaining fraction subject to a global competition, the concept of exclusively American-mined Bitcoin appears more like a dream than a feasible policy.
Intense Global Mining Competition
Bitcoin mining has evolved into a lucrative industry worth billions of dollars. Trump’s patriotic push must contend with a worldwide arena crowded with financially robust competitors. Russian oligarchs, Dubai’s elite, and Chinese investors across Africa are all actively participating.
These entities possess inexpensive power sources, extensive financial resources, and no inclination to play a subordinate role to the U.S. The statistics paint a clear picture. While Bitcoin mining in the U.S. has expanded into a multi-billion-dollar sector, American miners contribute less than 50% of the global hashrate—the computing power driving mining operations. This discrepancy does not stem from a lack of ambition among U.S. miners but rather from the relentless competition on a global scale.
Kazakhstan is boosting its mining facilities, China is discreetly reactivating prohibited operations, Ethiopia’s hydroelectric capabilities are turning it into a crypto hub in Africa, and Argentina’s miners are turning to Bitcoin as a hedge against rampant inflation.
In addition, the Middle East is making significant strides in the field. MARA Holdings, the top Bitcoin miner in terms of market capitalization, partnered with Abu Dhabi’s sovereign wealth fund to construct a massive mining facility. Even American companies are engaging in the global game, seeking cheaper energy sources and establishing partnerships overseas to remain competitive.
While Trump’s vision is ambitious, the global mining landscape is fiercely competitive. Every player seeks a slice of the pie, and some nations with abundant cheap energy resources can undercut American operations at every turn.
Mounting Pressure on U.S. Miners
American miners swiftly rallied behind Trump after his transition from a crypto skeptic to a staunch industry advocate. Companies like Riot Platforms and CleanSpark Inc. placed their bets on Trump’s commitment to reducing environmental regulations, curbing competition, and dismantling regulations implemented during the Biden administration.
These miners threw their support behind Trump, contributing $135 million from the crypto industry to his campaign. However, backing from Trump does not eliminate the challenges at hand. Despite Bitcoin’s impressive 113% return in 2024, most mining stocks are closing the year with significant losses.
Argo Blockchain’s value has dropped by 84%, while Sphere 3D has seen a 69% decline. On the other hand, Core Scientific has experienced a 327% surge, and Bitdeer has risen by 167%. However, for most miners, the financial outlook remains bleak.
The challenges extend beyond market returns. Mining difficulty surged by 50.71% this year, making it increasingly difficult to acquire new Bitcoin. Furthermore, operational costs have soared, with BitFuFu reporting a staggering 168% increase in mining expenses, reaching $51,887 per Bitcoin mined.
Moreover, the machines crucial to mining operations predominantly originate from Bitmain, a Chinese manufacturer. A potential trade war with China could escalate the cost of these rigs, imposing financial burdens that American miners may struggle to absorb.
U.S.-based miners are not only contending with global competition but are also expanding their hosting services, which involve operating mining machines owned by foreign investors. Therefore, even within U.S. borders, the concept of “Made in USA” is not consistently upheld.
Bitcoin Halving and Diversification Strategies
The Bitcoin halving process, where mining rewards are halved every four years, is placing unprecedented pressure on profits. In April, rewards decreased from 6.25 BTC to 3.125 BTC per block. This anticipated event has impacted miners’ earnings, which amounted to $42 million in December, compared to a peak of $100 million earlier in the year.
Nevertheless, some miners are adapting to the changing landscape. Core Scientific, traditionally focused on Bitcoin, has ventured into artificial intelligence by collaborating with CoreWeave. By hosting Nvidia GPUs and capitalizing on the AI boom, they anticipate generating $8.7 billion in revenue over the next 12 years. Other companies like Hut 8 and MARA are accumulating Bitcoin reserves to fortify their financial positions.
U.S. miners raised over $2.2 billion through stock offerings this year. While this influx of capital is vital for many miners, it underscores the formidable challenges within the industry. Reduced rewards, escalating costs, and fierce competition are compelling miners to innovate or exit the market.
A Step-By-Step System To Launching Your Web3 Career and Landing High-Paying Crypto Jobs in 90 Days.