The news on CoinWorld:
Donald Trump Supports BTC as a Strategic Reserve Asset. Trump’s endorsement of cryptocurrencies has sparked a voting bloc of cryptocurrency executives and owners.
In a significant turnaround, former President Donald Trump has shifted his stance on cryptocurrencies, which he once disparaged. His narrative aims to win the votes of young cryptocurrency enthusiasts and wealthy stakeholders to combat and defeat current President Joe Biden.
However, Trump has not been a long-time fan of cryptocurrencies. In 2019, during his presidency, he expressed disdain for cryptocurrencies.
In 2019, Donald Trump stated that Bitcoin and other cryptocurrencies are not currencies and are highly volatile. Through a series of tweets, he expressed,
“I am not a fan of Bitcoin and other cryptocurrencies. They are not currencies, highly volatile, and are created out of thin air. Unregulated crypto assets can facilitate illegal activities, including drug trade and other illicit activities.”
He further added,
“We have only one real currency in America, and it is stronger than ever, reliable and dependable. It is the most dominant currency in the world to date, and it will remain in that status forever. It is called the dollar!”
However, after meeting with cryptocurrency miners and receiving $100 million in funding for his 2024 campaign, Trump has now changed his position. He urges cryptocurrency users to vote for him as he will oppose Biden’s hostility towards Bitcoin.
Politicians Support BTC/USD
Recently, Trump has come out in support of BTC as a strategic reserve asset. With Trump’s voice mixed in, various politicians are expressing support for BTC.
Reportedly, former presidential candidate Ramaswamy suggested Trump consider backing the dollar with various commodities including BTC to maintain the dollar’s value.
In addition, Senator Cynthia advocates for the Federal Reserve to increase BTC in its reserves. Under Trump’s leadership, these Republican politicians view BTC as a value store that is beneficial for the economy.
Success Case of El Salvador and Micro-level Strategy
Many companies are holding BTC as a reserve asset, and for companies like MicroStrategy, this is a success story.
In 2020, MicroStrategy announced that they had begun accumulating BTC as a treasury reserve asset. After experiencing over a decade of poor performance, MicroStrategy’s stock price surged by more than 900%.
Currently, it is the largest corporate holder of BTC, owning over 226,000 BTC. Since 2021, El Salvador has also been holding BTC as a reserve asset.
Upon President Bukele’s election, the country announced plans to accumulate BTC as a reserve asset. Since purchasing BTC in 2021, the profits from these tokens have exceeded 50%, and the president intends to hold for the long term.
What Trump’s re-election means for cryptocurrencies
It is noteworthy that Donald Trump may be re-elected, which would make him the first U.S. president to support BTC. Essentially, his election would play a key role in establishing better regulatory clarity.
The cryptocurrency community needs clear, consistent, and fair regulations while protecting investors, and a supportive cryptocurrency regime will help provide this clarity.
With clear regulations, it becomes easier to discuss and understand the impact of digital currencies on the U.S. and global economies.
Lastly, Trump’s re-election would signify the legitimacy of cryptocurrencies, driving other governments and states to begin implementing crypto-friendly regulations.