Bitcoin miners at Donald Trump's closed-door event say he thinks bitcoin can help win AI arms race

Donald Trump has expressed his desire to ensure that all future bitcoin is minted in the U.S. In a closed-door event with bitcoin miners, Trump convened a working group of the country's top bitcoin miners to discuss the future of bitcoin in the U.S. The meeting marked the first time the former president had taken a meeting with the technologists securing the $1.3 trillion bitcoin network.

Trump's pro-crypto campaign platform comes as polling data shows that crypto matters more to the voting public now than in past presidential elections. A Harris poll funded by the spot bitcoin ETF issuer Grayscale found that one in three U.S. voters will consider a candidate's crypto stance before casting a ballot.

If Trump's proposal to mint all future bitcoin in the U.S. were to be implemented, it could potentially have significant impacts on the global bitcoin network. Currently, roughly 37% of the bitcoin network's miners are located in the U.S., with China closely following at 21% of bitcoin's global processing power despite Beijing banning the practice in 2021.

The potential impact of Trump's proposal could be a shift in the geographical distribution of bitcoin mining, with a significant increase in mining activity in the U.S. This could lead to increased competition among miners, potentially driving up the cost of mining. It could also lead to a more centralized bitcoin network, with a larger proportion of mining activity taking place in the U.S. This could have implications for the decentralized nature of the network, which is often cited as one of its key strengths.

However, it's important to note that Trump's proposal would face significant challenges in implementation. Bitcoin is a decentralized network, and its operations are not controlled by any single entity or government. Therefore, it would be difficult for Trump, or any other individual or government, to dictate where bitcoin mining takes place. Furthermore, the global nature of the bitcoin network means that mining activity will naturally tend to gravitate towards areas with the lowest costs and most favorable regulatory environments, regardless of where Trump wants it to occur.

The main reasons Trump and the meeting participants believe that the U.S. should lead in bitcoin mining are as follows:

1. Economic Competitiveness: The U.S. is currently the global leader in bitcoin mining, and maintaining this position could help spur economic growth. Bitcoin mining is a computationally intensive process that requires significant investment in hardware and electricity. By leading in this sector, the U.S. can create jobs, drive innovation, and stimulate economic activity.

2. Energy Independence: Bitcoin mining can help the U.S. achieve energy independence by providing a financial incentive to build out renewable energy infrastructure. Bitcoin miners can act as a flexible load, monetizing renewable energy when there are no other buyers, and reducing their energy consumption when demand on the grid increases. This makes renewable energy economically viable when it might not be otherwise.

3. Geopolitical Strategy: Leading in bitcoin mining can be seen as a strategic move in the context of global economic competition, particularly with China. As the race for technological advancement continues, dominance in sectors like bitcoin mining and AI can provide advantages.

4. Job Creation: Bitcoin mining can create jobs, particularly in rural areas where mining operations are often located. These jobs span a wide range of sectors, from technology to construction, contributing to local economies.

5. Protection of Individual Rights: Trump has positioned himself as a defender of individual rights, including the right to self-custody digital assets. Supporting bitcoin mining aligns with this stance.

6. Support for Emerging Technologies: Bitcoin mining requires significant computational power and energy resources, similar to the demands of emerging technologies like AI. By leading in bitcoin mining, the U.S. can also position itself to lead in other emerging tech sectors.

7. Innovation: The bitcoin mining industry is a hotbed of innovation, with continuous improvements in efficiency and sustainability. Leading in this sector can help drive broader technological innovation.

8. National Security: Bitcoin mining can contribute to national security by providing a decentralized, censorship-resistant form of digital currency. This can help protect against potential threats like central bank digital currencies (CBDCs), which some view as a potential tool for government surveillance and control.