America’s Grip on Bitcoin Mining Slips, Despite Trump’s Ambitions for Dominance

The United States, which rapidly became the global epicenter of Bitcoin mining following China’s industry crackdown in 2021, is facing growing challenges to maintain its dominance. Recent data indicates that the country’s share of the global hash rate has either stabilized or begun to slip, even as prominent political figures, including former President Donald Trump, explicitly push for the US to secure the leading role in the sector.

For nearly three years, the US, particularly Texas and states offering cheap natural gas or renewable power, consistently held over 35% of the world’s mining power. However, rising energy costs, mounting regulatory scrutiny—especially regarding environmental impact and grid stability—and robust competition from emerging hubs abroad are eroding this advantage.

Internationally, nations like Paraguay, El Salvador, and Norway are leveraging underutilized hydroelectric power or favorable cold climates to attract miners with significantly lower operating costs and clearer regulatory frameworks. This has led to a slow, steady outflow of mining investment that might otherwise have stayed within US borders.

Counter to these market forces, political rhetoric in the US is intensifying its support for the industry. Donald Trump recently met with major US Bitcoin miners and publicly declared his intention to ensure that all remaining Bitcoin is mined domestically, viewing it as a critical element of economic defense against perceived threats like Central Bank Digital Currencies (CBDCs). This political ambition aims to utilize US energy abundance and financial stability to cement global leadership.

Analysts suggest that while political support offers a crucial safeguard against outright regulatory bans, it cannot override the economic realities of high operating costs and grid constraints in key states. Unless the US can resolve its regulatory uncertainty and offer significantly cheaper, sustainable energy solutions compared to international competitors, the nation is likely to remain a major player, but achieving the ‘unquestioned dominance’ sought by its political champions will be increasingly difficult.

Source: America’s Grip on Bitcoin Mining Slips, Despite Trump’s Ambitions for Dominance