- Donald Trump supports BTC as a strategic reserve.
- Trump’s pro-crypto stance has inspired a voting bloc of crypto executives and owners.
In a huge turn of events, former President Donald Trump has changed his tune on cryptocurrencies he once despised. His story aims to counter and defeat current President Joe Biden by winning the votes of young crypto enthusiasts and wealthy stakeholders.
However, Trump has long not been a fan of crypto, and when he was president in 2019, he expressed his disdain for crypto.
In 2019, Donald Trump stated that BTC and other cryptocurrencies are not money and are highly volatile. He stated via 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 trafficking and other illegal activities.”
He added:
“We only have one real currency in the US, and it is stronger than ever, both reliable and trustworthy. It is by far the most dominant currency in the world, and always will be. It’s called the American dollar!”
However, Donald Trump has now reversed his stance after meeting with 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. With Trump’s voice in the mix, several 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 preserve the dollar’s value.
Senator Cynthia also advocated for the Federal Reserve to add BTC to its currency holdings. Led by Trump, these Republican politicians view BTC as a store of value that is beneficial to the economy.
The success case of El Salvador and MicroStrategy
Several companies have embraced BTC as a reserve asset, and for companies like MicroStrategy it is a success story.
In 2020, MicroStrategy announced that they had started accumulating BTC as treasury reserves. After a decade of poor performance, MicroStrategy’s stock price has risen more than 900%.
Currently, it is the largest corporate holder of BTC, with over 226,000 BTC. El Salvador has been using BTC as a reserve since 2021.
After the election of the current president, Bukele, the country announced its intention to accumulate BTC as a reserve. Since purchasing BTC in 2021, the tokens have built gains of over 50%, and the president plans to maintain this for the long term.
What Trump’s re-election would mean for cryptocurrency
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In particular, the possible 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 bringing about greater 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 economies.
Finally, Trump’s re-election would bring legitimacy to cryptocurrencies, pushing other governments and states to introduce crypto-friendly regulations.
Legitimacy means greater acceptance, usage and profitability for investors, while encouraging the decentralization of world currencies.