Former President Donald Trump's recent endorsement of bitcoin mining in the United States has sparked intense debate and speculation among experts, policymakers, and the broader crypto community. Trump's remarks, made Tuesday night, suggest a strategic shift to make the United States a dominant force in btc mining.
“bitcoin mining may be our last line of defense against a CBDC. Biden's hatred of bitcoin only helps China, Russia, and the radical communist left. We want all remaining bitcoin to be MADE IN THE USA!!! It will help us become ENERGY DOMINANT,” Trump declared, underscoring his vision of bitcoin as a critical asset in the nation’s energy strategy.
bitcoin game theory in full swing
This statement has far-reaching implications, particularly in the context of global dynamics and the current competition between nations to assert dominance in this emerging sector. Samson Mow, founder of JAN3, a company dedicated to nation-state adoption of btc, x.com/Excellion/status/1801034703933219314″ target=”_blank” rel=”noopener nofollow”>highlighted the transformative potential of Trump's position.
“Many people don't seem to understand the importance of Trump adopting bitcoin. This is not a partisan question or even whether promises will be kept. This is a change in the discourse that precedes the competition between nation states to achieve bitcoin dominance,” Mow stated in x.
He stressed that this development will likely be discussed behind closed doors by governments around the world, and mainstream media outlets are already picking up on the story. “Yesterday we saw ICBC in China adopt btc. This will move things even further,” Mow added, pointing to the recent endorsement of btc by the Industrial and Commercial Bank of China.
Laura Shin, a prominent crypto journalist, raised critical questions about the decentralization and security implications of Trump's proposal. On x, she asked: “Why is everyone celebrating Trump saying all Bitcoins should be made in the US? Doesn't that create a jurisdictional risk and make btc less decentralized and vulnerable to attacks? Shin's concerns center on the potential centralization of btc mining, which could undermine its founding principle of decentralization and make the network more susceptible to geopolitical pressures and cyber attacks.
Responding to Shin's concerns, Alex Thorn, head of research at Galaxy Digital, x.com/intangiblecoins/status/1801086526253641786″ target=”_blank” rel=”noopener nofollow”>Offered a strategic perspective. “Many believe that global adoption of bitcoin will involve nation states. If btc is to become a widely held or even global reserve asset, game theory demands it. If a US president makes bitcoin a national priority, other nations will too,” Thorn explained.
He argued that this move could accelerate the global adoption of bitcoin, as nations seek to compete for dominance in the ecosystem. “There is a view that competition will accelerate and ultimately accelerate and consolidate global adoption. If your geopolitical adversaries (or allies) think it's important, you too must play the game or risk being left behind. “Many Bitcoiners have written and spoken about this: Michael Saylor, Fidelity Digital Assets, Parker Lewis and Onramp,” Thorn added, referencing key figures and organizations advocating for btc’s role in the global financial system.
Shin, however, was skeptical about the strategic intent behind Trump's statement. “I agree, but I am 1000% sure that Trump did not make this statement with other nations' game theory around bitcoin in mind,” he commented.
Thorn responded, emphasizing that the essence of the matter lies in the development of game theory. “Maybe, but the question is not whether or not you know game theory. Bitcoiners are applauding that game theory is developing as predicted. Trump (or any candidate or national leader) championing national bitcoin policies is expected, even inevitable, and is now accelerating,” Thorn said.
Adding another layer to the conversation, Matthew Pines, director of Sentinel One, x.com/matthew_pines/status/1801086877472084306″ target=”_blank” rel=”noopener nofollow”>shared his thoughts on the possible consequences of Trump's pro-btc stance. “Trump says a lot of things. Not all of them become policies. But I have a feeling he is serious about this,” Pines commented, noting the unpredictable nature of political promises versus actual policy implementation.
Furthermore, he emphasized that it is less about what it means for bitcoin in the US, but rather the reaction it provokes in other countries. “Depending on the scope and scale of their potential btc-related national policy actions, and how well executed and calibrated they are relative to existing institutional systems and market expectations, the geopolitical impact could be anything from shrinking shoulders, but… Watch and wait until a shitty fight, or something in between,” Pines commented.
At the time of publication, btc was trading at $67,375.
Featured image created with DALL·E, Trading chart
