With Trump winning the election in the United States, there is a lot of hype and positive expectation for any financial market, whether it is stocks or crypto. Part of us that are involved in crypto are enjoying the recent appreciations in value and think that finally someone that understand the blockchain technology came into power and can forge and boost its path forward. But is it that simply? Well, not quite and Trump might have personal reasons to warm up crypto and shill it as something that will save us all. Don't understand me wrong, this is not bad, but in the same time I don't want it to break the trust that many are giving it so easily. Everybody needs to understand that the blockchain technology and cryptocurrencies have good and strong use cases, but you need to understand those in order to distinguish between those that do not bring any value and which will wipe out all your investments in a blink of an eye.
Crypto is based on thin air
First of all let's remember that Trump previously said that the value of cryptocurrencies is “based on thin air” and he even described Bitcoin as a “scam”. In a world based on values and beliefs, that cannot be erased so easily and nor can he make a 180 degree change and start praising it otherwise. But well, this is the world in which we are living and that's quite right what happened. Donald Trump had a “change of heart” and said that: "I am very positive and open minded to cryptocurrency companies and all things related to this new and burgeoning industry". He went one step forward and iterated that US "must be the leader in the field, there is no second place".
Crypto is the new burgeoning industry
Trump might have carried out some novel and faulty policy analysis or he is seeking some personal gain. During his campaign, he promised a national crypto reserve to win over the “burgeoning crypto lobby”, which would offer speculators “an opportunity to monetize their investment on the US government’s dime”. His action was clear at that point as we wanted to win everybody for support, but if that was real or not we will need to wait and see. But while that could have started in a way, if you add some skin in the game, everything changes.
Crypto provides exponential returns
He may also be trying to cash in on crypto himself, raising questions about conflicts of interest. Most of the net proceeds from his new venture, World Liberty Financial, a crypto platform, would go to a limited liability company he owns. So far, the plan is working out well and we already see how crypto lobbyists curry favor with the administration. When there are gains from both parties, things get well oiled and the machine works well.
The current crypto surge is based on the belief that Trump will be a crypto ally. It seems he has many reasons to be one, even personal. Should we care about that? While we are in a bull market probably not, but when we'll go into a bear market when most of the investors would have lost their shirt... that might be another thing.
This is why I believe it is important to be cautious and have reasonable expectations and understanding when it comes to crypto. Shitcoins will be shitcoins whether you want it to believe or not, you can ride the bull and win if you get out early, but if you don't get fast enough, you might see everything go to drain. And that's when the world will need to confront a harsh reality as it simply didn't understand the technology and bet blinded on crypto assets without any use case or value.
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I read somewhere that his son is highly invested and involved in crypto and this could be one reason why he is supporting crypto and #bitcoin but this is good for all of us. I don't know if this a real news or not, but as we expect Trump to take oath next month, things should be better in crypto. What do you expect btw?
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Trump took advantage of crypto to win over Biden. Keeping to promise will be advantageous to the US government. The bitcoin numbers are going up which would help salvage debt
Donald Trump's positive attitude towards Crypto gave Crypto a big push up which he should be thanked for and this is why he won the election. Crypto prices are rising at all levels, Which gave investors a lot of profits and marked the beginning of another era.
There may be many things that we will know in the future but right now people are more than happy with Trump because the price of Bitcoin has gone up a lot and now people are waiting for the reversal to happen to them. The pump will come.