In-depth analysis of the impact of Trump's Bitcoin policy on future market development

Author: Bitkoala; Source: Bitkoala Finance

Although it was a little later than the original time, in the early morning of Beijing time today, former US President Donald Trump still took the stage of the 2024 Nashville Bitcoin Conference as scheduled and delivered an exciting speech.

Different from the 10,000-word speech shared by other media, Bitkoala Finance will focus on analyzing the impact of Trump's Bitcoin policy on the future development of cryptocurrency from the following aspects.

Bitcoin Mining: The United States needs to produce a lot of electricity to support Bitcoin mining

Trump said: "I want to make sure that the United States becomes the global capital of cryptocurrency and the world's Bitcoin superpower. We will achieve this goal. If cryptocurrency is going to define the future, I hope it is mined, minted and produced in the United States, not produced elsewhere. If Bitcoin is going to "go to the moon" as we say, I hope the United States will lead the trend. This will happen. You will be very happy with me, and you will be very happy."

Impact Analysis:Obviously, Trump wants to see more American companies engage in Bitcoin mining. First, Bitcoin mining is an activity with potential economic benefits. Mining companies can earn income by verifying transactions and obtaining new Bitcoins. Trump may believe that by encouraging more American companies to participate in mining, economic growth and employment opportunities can be stimulated. Secondly, the cryptocurrency industry has developed rapidly in the past few years. Trump may hope that American companies can occupy a larger market share in this field to remain competitive. There are also some cryptocurrency supporters among Trump's supporters. They may hope that Trump can support this industry to attract the support of this part of voters.

In short, Trump's encouragement of more American companies to engage in Bitcoin mining may be due to economic, industry growth and political considerations.

Fire Gary Gensler: America needs a SEC Chairman who supports building the future

Trump said: "I promise the Bitcoin community that the day I am sworn in, Joe Biden and Kamala Harris' anti-cryptocurrency campaign will end. It will end. It will be done. The moment I am sworn in, the persecution will stop and the weaponization of your industry will end. As long as I am in the White House, Elizabeth Warren and her minions - who are awful to you and hate everything about you - will not touch Bitcoin. They will not touch cryptocurrency. They will let it grow. We will let it grow. On my first day in office, I will fire Gary Gensler and appoint a new SEC Chairman who believes that America should build the future, not hinder the future, which is exactly what they want. Let me say it again: On my first day in office, I will fire Gary Gensler."

Impact Analysis: Frankly speaking, if Trump wins the next US presidential election, Gary Gensler is likely to leave the position of Chairman of the SEC immediately. Gary Gensler has implemented comprehensive reforms at the SEC, but his strict approach has also raised questions and concerns among industry participants. Trump's decision may have an impact on the cryptocurrency market, but the specific impact remains to be seen.

Trump's supporters may think that firing Gary Gensler is a wise move. They feel that the reforms implemented by Gary Gensler under the leadership of the SEC are too strict and have a negative impact on the industry. They hope to see more flexible and market-friendly policies. Some people believe that Gary Gensler's reforms at the SEC are necessary to protect investors from fraud and misconduct. They may worry that Trump's dismissal of Gary Gensler will weaken supervision, which will lead to market instability.

National Bitcoin Reserve: The United States will retain 100% of all Bitcoin currently held or acquired in the future

Trump said: "If elected, the government policy will be that the United States will retain 100% of all Bitcoin currently held or acquired in the future. We will retain 100%. I hope you do a good job. This will actually serve as the core of the strategic national Bitcoin reserve. We will take measures to transform this huge wealth into a permanent national asset that will benefit all Americans."

Impact Analysis: As one of the world's largest economies, the United States' policy changes have a huge impact on global financial markets. The news that Bitcoin has become a strategic reserve asset may trigger a strong market reaction, and investors' demand for Bitcoin may increase sharply, pushing up its price. This will also further enhance the mainstream recognition of Bitcoin, and other countries and institutions may follow the United States's footsteps and include Bitcoin in their reserve assets to consolidate its position in the global financial system. In terms of political impact, Trump's change of attitude reflects that cryptocurrency users have become a growing political force during the election. He also promised to keep all Bitcoin jobs in the United States and encourage stablecoin legislation. This could have a positive impact on the development of the cryptocurrency industry.

On the other hand, as a global financial center, the United States' policy decisions may affect the policies of other countries. As a strategic reserve asset of the United States, Bitcoin may affect the attitudes and policies of other countries towards Bitcoin. It is reported that the Central African Republic, an inland country in the central part of the African continent, has adopted Bitcoin as legal tender. Although it is not a reserve asset, Bitcoin continues to attract attention worldwide. The United States, Russia, Nigeria, the European Union, China, Bulgaria, Ukraine and other countries all have a certain influence in holding Bitcoin.

Trump, Bitcoin President?

During his speech, Trump's words attracted great attention from the participants of the Bitcoin Conference. He said: "Ultimately, my promise to everyone is: I will be the president who supports innovation and Bitcoin that America needs. This will be a prosperous industry, a great industry. I will do the same for other industries. Our country has never prospered by censoring new ideas and stifling people's dreams."

Although it is not an official position, Trump's self-proclaimed "Bitcoin President" may have some impact on the cryptocurrency market. First, his remarks may trigger market sentiment fluctuations. Investors usually pay attention to the remarks of political leaders, especially those involving emerging fields such as cryptocurrencies. If Trump continues to support Bitcoin, this may increase investors' confidence in Bitcoin.

Secondly, as a former US president, Trump's remarks have a certain influence. If he publicly supports Bitcoin, this may increase Bitcoin's mainstream recognition and attract more institutions and individuals to participate. In addition, Trump's policy stance may affect the regulatory environment of cryptocurrencies. If he continues to speak out on the political stage, it may trigger policy changes and have a positive or negative impact on the cryptocurrency market.

Finally, there is an old Chinese saying: listen to what he says and watch what he does. Indeed, as a US president who has participated in many talk shows, whether he can fulfill his promises depends on what he will do. Let us wait and see.