Trump talked about wanting the US to become a bitcoin superpower

photo: author's archive

While we in the Czech Republic were basking in the sun this weekend, in Nashville, USA, a little bit quietly took place
Bitcoin Conference 2024. What will make history? By having a former and possibly future
US President D. Trump. He professed his love for bitcoin in his speech. It is therefore already clear that
the next US presidential election will not just be about choosing a new Mr (or Mrs) White House. They will
also a referendum on cryptocurrency regulation. The regulation of bitcoin or ethereum would be, in the event of a victory
the presumptive Democratic nominee K. Harris significantly tighter than in the case of Trump's victory.
Trump has talked about wanting the US to become a bitcoin superpower. According to him, 3 things are needed to make it happen
Steps. The first is that significantly more will be needed to mine bitcoin and develop artificial intelligence
than the amount of electricity currently produced in the US. So Trump is talking about the US using
fossil fuels to generate vast amounts of cheap electricity. So while Europe, with the help of Green
Deal makes electricity generation artificially expensive, US would go exactly the opposite due to technological advances
towards.

The second step would be for Trump to immediately fire the head of the Securities and Exchange Commission
(SEC) Gary Gensler. Gensler has long had a lukewarm relationship with the crypto business. The best evidence
there were endless delays before the SEC approved bitcoin exchange-traded funds (ETFs).
The third step is also very important. Under a Trump administration, the United States would retain the existing roughly
210,000 bitcoins seized by the authorities in criminal proceedings. These coins, according to Trump, should become
National Strategic Bitcoin Reserve. They should definitely not be sold. Moreover, while the eurozone
is slowly (but surely) marching towards the future replacement of the euro with a central bank digital currency (CBDC), so Trump
said it would never allow the introduction of the CBDC, the digital dollar.

It wouldn't be Trump without a bit of scaremongering as well. Unless the US becomes the number one crypto power,
it could be China. In addition, Trump talks about the total market capitalization of bitcoin one day
will probably surpass gold. But there is still a long way to go. The bitcoin exchange rate would
would have to increase roughly fifteenfold, and at the same time the rise in the value of gold would have to stop. This is for
the next decade of science fiction.

Even so, we would argue that the increase in the chances of D. Trump's chances of being elected to the White House has contributed to the recent
days to stabilize the bitcoin exchange rate. Specifically, bitcoin is now trading above the $69,000 level.
Thus, it is relatively in sight of the historical highs, which are located at the level of $74,000. Chart
of bitcoin's further development for the coming months is obvious. Trump's election victory = an early rise in the exchange rate
bitcoin to new all-time highs. In the event of a Democratic victory in the presidential election, state
regulation has made life more difficult for cryptocurrencies. And that would inevitably lead to bitcoin
has been hitting highs for a much longer period of time.

Markéta Šichtařová

Director of next finance s.r.o.

nextfinance.cz/gnews.cz-geh