- Donald Trump backs BTC as a strategic reserve asset.
- Trump’s pro-crypto stance has inspired a voting bloc of crypto executives and owners.
In a massive turn of events, former President Donald Trump has changed his mind about cryptocurrencies he once despised. His narrative is aimed at countering and defeating current President Joe Biden by winning the votes of young crypto enthusiasts and wealthy stakeholders.
Trump, however, has long since stopped being a fan of cryptocurrencies. When he was president in 2019, he already indicated that he did not like crypto.
In 2019, Donald Trump stated that BTC and other cryptocurrencies are not money and are highly volatile. He stated through a series of tweets,
“I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on thin air. Unregulated crypto assets can facilitate illegal behavior, including drug trafficking and other illicit activities.”
He added:
“We have only one real currency in the United States, and it is stronger than ever, both reliable and trustworthy. It is by far the most dominant currency in the world, and it always will be. It is called the US dollar!”
However, Donald Trump has reversed his stance after meeting crypto miners and securing $100 million in funding for his 2024 campaign. He urged crypto users to vote for him as he will stand up to Biden’s hatred for Bitcoin.
Politicians Support BTC/USD
Recently, Trump came out to support BTC as a strategic reserve asset. With Trump’s voice in the mix, several politicians have voiced their support for BTC.
Former presidential candidate Ramaswamy has reportedly advised Trump to support the US dollar with various commodities, including BTC, to preserve the value of the dollar.
Senator Cynthia also advocated for the Federal Reserve to add BTC to its currency holdings. Under Trump’s leadership, these Republican politicians see BTC as a store of value and beneficial to the economy.
The El Salvador and MicroStrategy Success Story
Several companies have adopted BTC as a reserve asset and for companies like MicroStrategy, it is a success story.
In 2020, MicroStrategy announced that they had begun collecting BTC as treasury reserve assets. After a decade of underperformance, MicroStrategy’s stock price has risen by over 900%.
It is currently the largest corporate holder of BTC, with over 226k BTC. El Salvador has been using BTC as a reserve asset since 2021.
After the election of the current president, Bukele, the country announced that it planned to accumulate BTC as a reserve asset. Since the purchase of BTC in 2021, the tokens have generated more than 50% gains and the president plans to hold on to this for the long term.
What Trump’s Re-Election Would Mean for Cryptocurrency
Source: X
In particular, the potential re-election of Donald Trump would make him the first pro-BTC president in the United States. In essence, his election would play a crucial role in creating greater regulatory clarity.
The crypto community needs clear, consistent, and fair regulation while protecting investors. A pro-crypto regime would help provide that clarity.
With clear regulations, it would be easy to discuss and understand the impact of digital currencies on the US and global economy.
Finally, Trump’s re-election would mean that cryptocurrencies would become legitimized and would push other governments and states to enact crypto-friendly regulations.
Legitimacy means greater acceptance, usage, and profitability for investors, while driving the decentralization of global currencies.