Stringsinger has expressed many opinions above about which I would like to comment. One in particular is:

Bluegrass started in the gas fields up in Indiana. Bill Monroe had "The Bluegrass Boys" hence the term Bluegrass which had little to do with Kentucky.

It has always been my understanding that Bill Monroe, who was from Kentucky (I visited his homestead in Rosine, KY) named his band "The Blue Grass Boys" after his home state, which was known as the blue grass state, meaning the native grass on the ground. His band instrumentation, which varied a bit in the beginning but then pretty much became fixed at mandolin, banjo, guitar, bass and fiddle, and his style of music eventually defined the genre and became known as "bluegrass" after his band's name.

In my opinion, bluegrass music does in fact have a lot to do with Kentucky, based as it is on Monroe's roots and influences and how he named his Kentucky band.