Experts debated Trump’s vision to withdraw all bitcoins in the US

Former President Donald Trump's recent statement about wanting all Bitcoin to operate in the US has sparked debate in the crypto community.

While some Bitcoin enthusiasts initially welcomed the idea, many experts argue that Trump's position misunderstands Bitcoin's fundamental principles.

Trump's Bitcoin Vision Sparks Debate

Crypto journalist Laura Shin raises a critical question. She asked why Bitcoiners celebrated Trump's statement about making all bitcoins available in the US.

She emphasized that this poses a legal risk, making Bitcoin decentralized and more vulnerable to attacks. Bitcoin advocate and sustainability consultant Margot Paez echoed this sentiment.

“We do not want the centralization of Hashret in America. This should be clear. Please get it together,” she said.

Read more: How Much Electricity Does Bitcoin Mining Use?

Congressman Sean Caston also expressed his disagreement with Trump's statement. In a series of tweets, Caston highlighted Bitcoin's practical limitations. It focuses on the energy-intensive nature of Bitcoin mining and its limited use in modern banking.

However, Nick Carter, a partner at Castle Island Ventures, disagreed with Caston's “correction” of Trump's vision. While Carter recognizes that Bitcoin doesn't need to be mined in the US, Kasten believes his criticism of Trump's statement is overblown and reactive.

Several prominent figures in the crypto industry shared their views on Trump's statement. Alex Thorne, head of research at Galaxy Digital, argued that Trump's statement could be interpreted as a geopolitical signal. This may encourage other countries to seriously consider Bitcoin mining.

“There is a view that competition will accelerate, ultimately accelerating and strengthening global adoption. If your geopolitical opponents (or allies, for that matter) think it's important, you have to play the game or risk falling behind,” he said.

Matthew Pines, national security fellow at the Bitcoin Policy Institute, further emphasized the potential geopolitical implications of Trump's stance. Depending on the extent and execution of Trump's bitcoin-related policies, international reaction could range from indifference to significant geopolitical shifts, Pines noted.

“I'm not sure how the Bitcoin-For-America/America-For-Bitcoin policy position relates to potential political and geopolitical instability in the US. [Treasury] Market, however, can be very exciting and very chaotic, very quickly,” he wrote.

In this heated debate, prominent crypto investor Mike Alfred expressed a mix of support and skepticism. He initially supported Trump's statement but later acknowledged its broader implications.

“Yes, we know. But more important than the impressive details is its spirit,” added Alfred.

Pro-Crypto Moves: Electoral Strategy or Real Change?

Trump's announcement followed a series of increasingly pro-crypto statements, including a pledge to defend the right to self-defense and accept crypto campaign donations. Despite these endorsements, Trump has historically had an inconsistent stance on Bitcoin. For example, in In July 2019, Trump publicly stated that he was “not a fan of Bitcoin and other cryptocurrencies,” which he considered “not money, and whose value is very volatile and based on thin air.”

In addition, Trump's low standing among global leaders further complicates the impact of his pro-Bitcoin stance. It is unclear whether Trump's statements will lead to actual policy changes or serve as political rhetoric aimed at him.

However, it's important to note that Trump's support for the crypto industry has come strategically as President Joe Biden's administration has taken a tougher approach, including the Bitcoin mining industry. A notable example is the shutdown of Chinese crypto mining company MineOne Partners. BeinCrypto reports that the Biden administration has ordered MineOne to vacate and sell its assets near a Wyoming Air Force base, and has described the company as a national security threat for hosting intercontinental ballistic missiles.

Read more: Crypto Regulation: What are the Pros and Cons?

Data on crypto-based prediction markets on Polymarket show that Trump has a 56% chance of winning the November presidential election. Meanwhile, Biden only has a 35% chance.