Trump Administration Fully Embraces Bitcoin, Sees 21M Supply as Key Value

Howard Lutnick, the U.S. Secretary of Commerce, has expressed a strong belief in the future of Bitcoin in America, stating that the federal government is now fully supportive of the cryptocurrency. In a recent interview, Lutnick compared Bitcoin to gold, highlighting its rarity and enduring value. He noted that the Biden administration had treated Bitcoin negatively, but that this attitude is now in the past and will not return.

Lutnick, who has been a long-time supporter of Bitcoin, began his journey with the cryptocurrency in 2017. He emphasized that Bitcoin's limited supply of 21 million coins is a key factor in its value. By 2020, he had fully committed to Bitcoin, and now plays a significant role in shaping the Trump administration's stance towards it.

Under the Trump administration, Lutnick and fellow Bitcoin advocate David Sacks have been instrumental in creating a Bitcoin Strategic Reserve, a campaign promise that President Trump quickly fulfilled. Lutnick credited Trump's leadership and open dialogue with the media for the administration's swift progress in this area.

One of Lutnick's key initiatives is the 'Investment Accelerator' at the Commerce Department. This program is designed to help billion-dollar-plus investments navigate regulations and permitting, with a particular focus on Bitcoin mining. Under this program, Bitcoin miners will be able to build private power plants near their facilities, reducing reliance on public grids and enabling cheaper, off-grid energy sources like hydroelectric power or flare gas capture.

Lutnick envisions a future where Bitcoin miners can build data centers directly on top of gas fields, which he believes will significantly boost Bitcoin mining in America. He dismissed concerns that a heavy concentration of Bitcoin mining in the U.S. could threaten the network's decentralized nature, stating that America is the best place for business and that success in America leads to the highest achievements.

Throughout the interview, Lutnick painted a vision of Bitcoin's future as closely tied to American entrepreneurship. He suggested that a more business-friendly environment, particularly one that welcomes Bitcoin mining and innovation, could benefit not only the Bitcoin community but also those feeling left behind by the economy.

Lutnick views Bitcoin as a commodity rather than a currency, comparing it to gold and oil. He suggested that the Bureau of Economic Affairs could incorporate Bitcoin into its calculations, similar to how it uses gold in refining and calculating National Economic Accounts and trade statistics. This perspective aligns with the administration's goal of treating Bitcoin as a valuable asset rather than a form of currency.

The Trump administration has made it clear that the Bitcoin industry is welcome in the U.S. Lutnick highlighted the presence of true Bitcoin believers within the administration, including himself and White House AI and Crypto Czar David Sacks. The goal is to help the Bitcoin industry achieve success in America, contrasting sharply with the previous administration's approach, which Lutnick described as hostile. He emphasized that the U.S. will continue to embrace Bitcoin, stating that the country has never turned its back on something it has embraced.

Lutnick's vision for Bitcoin in America under the Trump administration is clear: the country is committed to fostering a thriving Bitcoin industry. By treating Bitcoin as a commodity and providing support through initiatives like the investment accelerator, the administration aims to position the U.S. as a global leader in Bitcoin mining and technology. This proactive approach is expected to attract more Bitcoin businesses to the country, further solidifying its role as a hub for cryptocurrency innovation.