Paul Hoffman
Carolina Journal
Former President Donald J. Trump recently proclaimed at the Bitcoin 2024 conference in Nashville that if crypto is to define the future, it should all be “mined, minted, and made in the USA.”
His precise quote was: “If crypto is going to define the future I want [it] to be mined, minted and made in the USA. It’s going to be; it’s not gonna be made anywhere else.”
While this may appeal to American Bitcoin enthusiasts, it is both unfeasible and may have unpredicted or intended consequences.
One of the fundamental pillars of blockchain technology is its decentralized nature. Therefore, attempting to centralize all crypto activities within the US contradicts this fundamental principle and may have undesired consequences, ranging from loss of trust to retaliatory trade measures, harming the US economy.
But even if we ignore the above, such a decision may also pose danger to the already overloaded energy grid, especially for states that consume more electricity than they produce, such as North Carolina.
According to the US Energy Information Administration’s latest published State Electricity Profile for North Carolina (https://www.eia.gov/electricity/state/northcarolina/), the state is a net importer of electricity.
In 2022 (latest available report) the state produced a total of 134,257,088 megawatt hours of electricity, while consuming a total of 141,065,412 megawatt hours.
Currently US-based mining facilities consume 37.9% of the global electricity used for mining Bitcoin and this adds up to 53,143,780 megawatt hours annually. The total electric power used globally on Bitcoin mining alone amounts to 140,378,110 megawatt hours annually and is constantly growing with the proliferation and adoption of cryptocurrencies.
Even if it were possible, moving all crypto production to the US would add enormous energy demands, likely leading to more-frequent outages and higher energy costs for residents, especially of net electricity importer states such as NC.
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