Love him or hate him, there’s little doubt that Donald Trump continues to make headlines. While rumors have been circulating over the upcoming election, we need to remember that Trump is inherently a businessman.
It therefore stands to reason that he rarely places all of his eggs in a single basket. One primary example of this multifaceted approach involves his relation with the cryptocurrency markets.
We’ve all known for some time that Trump now considers himself to be a “pro-crypto” candidate, while Kamala Harris has yet to fully weigh in on the issue. This could actually impact Trump’s popularity among anti-establishment voters, and even affect the upcoming election.
One recent action that demonstrates this attitude can be seen in the launch of “Trump Coins”; Trump himself calling them a symbol of “true American greatness”. What’s the deal here, and perhaps most critically, how might the cryptocurrency markets benefit from a Trump reelection?
Is Trump Coin a Cryptocurrency?
In a single word, no. Trump Coin is not a cryptocurrency, or any type of currency for that matter. The official website clearly states that it’s instead a medallion, so don’t expect to be able to use Trump Coin as any form of legal tender. It’s simply a way to commemorate the man, and just as importantly, his patriotic views. Having said this, Trump Coin can actually be viewed from a much larger context in relation to his feelings about cryptocurrencies as a whole.
You can however check out one of the various unofficial meme coins in his honor in our MAGA coin review.
The Bitcoin Conference
Although the line to gender-neutral bathrooms might have been short at this year’s event, there were plenty of attendees who were interested in what Trump had to say about the crypto ecosystem. It turned out that his stance is now in direct agreement with other cryptocurrency backers; notably Robert F. Kennedy Jr. and Edward Snowden. So what’s the big deal with Trump jumping aboard the Bitcoin bandwagon?
Well, we need to keep in mind that Trump had previously called Bitcoin a “scam” and a “disaster”. Even a man known for his use of superlatives seemed to have plenty of negative things to say about the notion of cryptocurrencies as a whole. This brings up an important question. Why the reversal?
Most experts agree that this is primarily a political move. The fact of the matter is that Trump needs plenty of ammunition against Harris, and he’s used Biden’s anti-crypto stance to reinforce his own perspective (right or wrong) that big government is slowly chipping away at personal freedoms. Considering the decentralized nature of the blockchain, it makes perfect sense that adopting a cryptocurrency-friendly stance will open up a powerful voting base. However, we need to dig a bit deeper.
The Wider Implications of Putting America First
Attacks from elitist entities, threats from foreign state actors, and a nation on the verge of tyranny have always represented some of the core tenets of the Trump campaign. Even if the average voter might not agree with such views, they can’t deny the threat that major foreign economies pose. For instance, the value of China’s foreign reserve now exceeds $3.2 trillion dollars. Imagine if China decided to liquidate its dollar-backed holdings, and the impact that this would have on the United States trade deficit.
This is likely one of the many scenarios that’s running rampant around Trump’s head. Endorsing cryptocurrencies might very well provide a means to offset the threats posed by major economic powers such as China; an ace up the sleeve if you will. This stance could then be used as a means of political leverage in the future if Trump continues to take the stance of a hardliner; once again repeating his America-first mindset.
A Potentially Bright Future
So, what does all of this mean for the future of Bitcoin, and cryptocurrencies as a whole? We need to answer this question from both a short- and long-term perspective. For instance, the Trump campaign has already received endorsements totalling more than $25 million dollars from the cryptocurrency community alone. This is indeed welcome when we consider the funds that Harris has raised. So much for short-term concerns.
The long-term outlook could be quite rosy if Trump follows through with promises such as subsidizing the mining of cryptocurrencies, and implementing regulations that provide additional levels of transparency for the average investor. On the other hand, we also need to remember that centralized oversight is one of the core issues that crypto purists are desperate to avoid. We’ll have to see if Trump can find a balance.
Is this a political move? Might we see Trump reverse his stance? After all, it wouldn’t be the first time that he has left us scratching our heads. Considering that he once stated that he wanted to make the United States the “Bitcoin superpower of the world”, investors are certainly keen to see what’s in store.
We will nonetheless have to wait until the November elections. Assuming that Trump returns to the White House, cryptocurrency holders could be in for a pleasant surprise.
