Donald Trump, the former president of the United States and current presidential candidate for the 2024 elections has recently expressed his plans to turn the U.S. into a major hub for Bitcoin mining.
In a move that Trump calls “his last line of defense against the centralized digital currency,” Trump has reasoned with his plan by stating it to be a necessary action against the plans of the Federal Reserve to create a centralized digital currency for the U.S., which he argues could give them complete control over everyone’s hard earned money.
Donald Trump further argues against the position of his opposition headed by Joe Biden by saying that discouraging cryptocurrencies would only result in strengthening their adversaries like China, Russia, and the Radical Communist Left.
Many of the major players in the cryptocurrency field have welcomed Trump’s initiative and have actively expressed their satisfaction in seeing support coming from the side of both producers and regulators of cryptocurrency.
Now let us look at the potential pros and cons of putting such an idea into existence.
Potential Benefits and disadvantages of the move
Let us look into what the potential benefits and disadvantages of the initiative will be to the cryptocurrency market and the U.S. economy.
benefits of the move
With the recent banning of cryptocurrency from major countries and their political parties such as China’s CCP party, many major Bitcoin miners have gone on a run to find alternate places to set up their mining operations.
The US could set itself as the world leader in the Bitcoin mining industry by attracting these potential investors to take up their operations on U.S. soil.
The second benefit of pushing to trade with Bitcoin is as Trump put it:” Energy Dominance”.
Donald Trump argues that miners could help in bolstering the grid’s energy supply and help in bettering the energy infrastructure.
The third benefit of encouraging Bitcoin mining will be the flow of resources and funds into the U.S. market while establishing it as the leader in the new cryptocurrency revolution.
disadvantages of the move
Going into talking about the cons of promoting or even nationalizing cryptocurrencies, one of the major concerns is how it will affect the state of the nation’s natural resources.
Operations such as Bitcoin mining consumes a lot of energy and occupies a lot of land. This becomes a cause of concern due to the chances of polluting or damaging the infrastructure or biodiversity.
Various residents near the mining fields have expressed concerns about the noise pollution, and water and power drainage issues that could pop up with the operation of the mines.
Another issue that the previous administration raised, concerning mining, was the potential for foreign entities to spy on the U.S. government through outsourced and foreign technologies that could be used with its facade as a mining operation.
The setting up of mines in close proximity to various defense bases is a cause for concern for the U.S. defense department as they suspect that this could cause interference with their networks and increase the risks of potential sabotaging of operations.
How is this statement going to impact the people?
Soon after Trump gave his speech about his plans for onshoring Bitcoin mining operations in the U.S., it received widespread criticism as well as appreciation from a large historically apolitical group.
A lot of the criticism was raised warning of how the concentration of all the Bitcoin miners in a single specific area goes against the entire idea of what Bitcoin and other cryptocurrencies are supposed to stand for.
Many see this as just a political stunt from the former president as part of his attempt to raise his approval levels, while others are optimistic about the prospects of the plan.
However way the case may be, this newfound support has raised over $100 million as campaign money for Trump, thanks to the large amounts of donations he received from major crypto venture firms like Coinbase and Ripple.
Final Thoughts
It is not yet clear whether Trump is planning to follow up with the promises that he has made to the millions of crypto enthusiasts and crypto ventures but what can be said is that the move has definitely generated a lot of attention in the crypto world and might potentially have a large impact on his Presidential election results for the year 2024.
