- Donald Trump supports BTC as a strategic reserve asset.
- Trump’s pro-crypto stand has inspired a voting bloc of crypto executives and owners.
In a massive turn of events, former President Donald Trump has changed his tune on cryptocurrencies he once despised. His narrative aims to counter and defeat the current President Joe Biden by gaining the votes of young crypto enthusiasts and wealthy stakeholders.
However, Trump has not been a long-time crypto fan, and when he was the president in 2019, he expressed his disregard for 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 unlawful behavior, including drug trade and other illegal activity.”
He further added,
” We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
However, Donald Trump has now reversed his stand after meeting crypto miners and getting $100 million funding for his 2024 campaign. He urged crypto users to vote for him because he will stand against Biden’s hate for Bitcoin.
Politicians support for BTC/USD
Recently, Trump came out to support BTC as a strategic reserve asset. With Trump’s voice in the mix, various politicians have expressed their support for BTC.
According to reports, former presidential candidate Ramaswamy has advised Trump to consider backing the US dollar with various commodities, including BTC, to maintain the value of the dollar.
Also, Senator Cynthia argued for the Federal Reserve to add BTC to its currency holdings. Led by Trump, these republican politicians see BTC as a store of value and it’s beneficial to the economy.
The Success Case of El Salvador and MicroStrategy
Various companies have adopted BTC as a reserve asset, and for corporations such as MicroStrategy, it’s a success story.
In 2020, MicroStrategy announced they had started to accumulate BTC as treasury reserve assets. After a decade of poor performance, MicroStrategy’s stock price has surged by over 900%.
Currently, it’s the largest corporate holder of BTC, with over 226k BTC. El Salvador has used BTC as a reserve asset since 2021.
After the election of the current president, Bukele, the country announced its intention to accumulate BTC as a reserve asset. Since the purchase of BTC in 2021, the tokens have accumulated over 50% in profit, and the president intends to hold on for the long term.
What Trump’s re-election would mean for cryptocurrency
Source: X
Notably, the possible reelection of Donald Trump would make him the first pro-BTC president in the United States. Essentially, his election would play a crucial role in establishing better regulatory clarity.
The crypto community needs clear, consistent, and fair regulation while protecting investors, and a pro-crypto regime would help provide such 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 reelection would mean legitimacy for cryptocurrencies, pushing other governments and states to embark on crypto-friendly regulations.
Legitimacy means increased adoption, usage, and profitability to investors while encouraging the decentralization of world currencies.