Matthew Sigel, Head of Digital Assets Research at VanEck, recently shared a groundbreaking proposal on X (formerly Twitter) regarding Donald Trump and Bitcoin miners. He outlined a vision where the U.S. government collaborates with Bitcoin miners within the “Freedom Cities” initiative proposed by Trump. Sigel’s suggestion emphasized a mutually beneficial arrangement, aligning BTC mining activities with potential tax incentives to build a national BTC reserve and encourage energy independence.
VanEck Exec’s Idea on Trump & Bitcoin Miners
“Imagine if the U.S. government partnered with #Bitcoin miners in these Trump-proposed ‘Freedom Cities’ and received a royalty on every BTC mined,” Sigel posted. In exchange, he suggested that miners could sell their mined Bitcoin tax-free under specific conditions. This approach would incentivize miners and create a potential revenue stream for the government.
He also suggested that miners using advanced technologies, such as flared gas, could receive additional tax breaks, thereby promoting sustainable mining practices. This, he argued, could boost energy independence, aid in carbon reduction, and support the strategic accumulation of Bitcoin.
Idea 💡
Imagine if the US government partnered with #Bitcoin miners in these Trump-proposed ‘Freedom Cities’ and received a royalty on every BTC mined, in return for the right to sell their BTC tax-free in certain cases.
Miners using advanced tech, like flared gas, could… https://t.co/GMaHwSvG8E
— matthew sigel, recovering CFA (@matthew_sigel) November 14, 2024
“Would be a win for energy independence, AI dominance, carbon mitigation (for those who care), & strategic BTC accumulation at the same time,” Sigel wrote.
Community Response
The idea quickly attracted responses within the Bitcoin community. A miner responded, expanding the VanEck exec’s concept by suggesting Native American reservations as an ideal location for such projects. Highlighting the sovereignty many tribes already hold, the miner proposed that implementing Sigel’s vision on reservations could bring both economic and social benefits to Indigenous communities.
“Native American reservations already have a significant amount of sovereignty, and I suspect that any remaining barriers could be addressed with legislation,” he said.
This responder also discussed a wide range of energy options that could be deployed on tribal lands, including solar, wind, geothermal, and potentially nuclear energy using small modular reactors. The miner noted that some regulatory adjustments might be necessary, specifically at the Department of Energy, to allow certain technologies.
Fantastic idea, but why wait for “Freedom Cities?” What if we potentially already had locations where this idea could be implemented?
Native American reservations already have a significant amount of sovereignty and I suspect that any remaining barriers could be addressed with… https://t.co/1jfphjawPX
— BowTiedNaga ♟ (@BowTiedNaga) November 14, 2024
The idea, they noted, could allow tribes to participate in Bitcoin mining or AI and HPC (high-performance computing) industries with income generated from these sectors remaining tax-free if allocated to infrastructure and essential services. “Perhaps even provide a BTC dividend to reservation residents or tribal members much like the Alaska Permanent Fund,” the miner suggested.
He also floated the idea of enabling private equity and venture capital firms to invest in infrastructure development. This would allow Bitcoin miners to handle operations while reducing upfront capital requirements. Opportunity Zones and investment tax credits could further enhance returns, potentially creating a blueprint for economically struggling regions across the U.S.
Also Read: When Will Altseason Begin? Timing the Perfect Entry After Bitcoin’s Rally
Source: https://www.cryptonewsz.com/vaneck-exec-bold-idea-trump-bitcoin-miners/