The world is currently holding their breaths as we are waiting for the results of the 2024 U.S. Presidential Election.
Just last week, the price of Bitcoin jumped to an astonishing $73,000, almost breaking an all-time high just a week before the Presidential Election. And it seems its price is just going to continue going up.
This phenomenon has caused experts to give their own speculations of what would happen if each of the candidates were to win the election, with many speculating that the price of Bitcoin would jump if Trump were to win the election and the price would slightly dip if Kamala were to win the election.
But just like there is a popular saying in crypto called "When in doubt, zoom out," I think the Zoom out mentality should also be applied at the polling booth.
While it might feel like a no brainer to vote for Trump because of his pro-crypto stance, but voting for Trump based on this alone would be far too shortsighted and reckless.
Trump's economic policies and its impact on Bitcoin
Backing Trump over his pro-crypto stance alone would be reckless - a short-sighted move that's based solely on the hope that BTC would rise substantially with him in power.
While holders might be cheering if their portfolio surges, but there would be no shortage of devastating ramifications elsewhere.
Experts have repeatedly warned that Trump’s economic agenda could be nothing short of a disaster for the US economy. His directives to place tariffs on imported goods would result in a tit-for-tat war with other countries.
This would result in another insurgency of inflation that would cause a rise in consumer prices and potentially forcing the Federal Reserve to keep interest rates high - curbing BTC’s long-term growth since Bitcoin performs best in low-rate environments that encourage risk-taking.
Bitcoin could lose its decentralised qualities if Trump wins
This election could have a profound impact on Bitcoin’s future, especially as Wall Street’s biggest players adopt the asset with the launch of Bitcoin ETFs.
However, Trump’s win could also mean that the very quality that makes Bitcoin unique - its decentralised nature - could be completely destroyed.
When Satoshi Nakamoto first created the Bitcoin, he envisioned Bitcoin to be used in a utopian world where the currency used by the people is freed from the control of the central government.
But could you imagine what would happen if Trump wins the Presidential Election? It could mean that the legend that Nakamoto created would completely erased.
If crypto’s growing political influence brings it closer to centralized institutions, Bitcoin could one day very well turn from a proud decentralised digital asset to a centralised asset.
Does Trump really care about Bitcoin?
Of course, the biggest elephant in the room is this . Does Trump really care about Bitcoin, or is he just using Bitcoin as a manipulation tool to garner the support of Bitcoin supporters?
It still remains unclear whether Trump genuinely understands or cares about Bitcoin’s values. While his campaign is centered around high-profile appearances with crypto advocates and promises that seem more like a ploy to drive donations than a sincere commitment to the technology.
Trump seems to have track record of flip-flopping when it comes to the values and policies that he supports, including crypto. Do you remember just a few years ago, he was infamous for his dismissal of Bitcoin as a "scam." But only after he started running for his presidency did he start to have a 180 degree change for Bitcoin and started to vehemently fight for crypto rights.
And if he is a true convert and believer of Bitcoin, then why is it that he holds no BTC in his portfolio? Some have even found that Trump seems to prefer Ethereum-based assets and memecoin like TRUMP and MAGA over Bitcoin, which makes one doubt Trump's loyalty to Bitcoin.
Trump has also gravitated toward flashy, speculative assets, releasing NFTs that depict him as a superhero and backing meme tokens. His approach to crypto resembles his casino ventures, more attuned to speculative altcoins than the principles of Bitcoin.
Taking a step back
The upcoming election will have global ramifications on issues like climate change and international conflicts. While Harris and the Democrats haven’t been perfect on crypto policy either, Trump’s crypto promises may not deliver the industry breakthrough some investors hope for. In fact, “Trumponomics” might reverse some of BTC’s recent gains.
Voters should choose based on the full scope of issues at stake. For crypto enthusiasts backing Trump, it’s essential to consider that his policies may fall short of expectations, and that the so-called “crypto hell” he warns of if he loses might be just as challenging if he wins.
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