An in-depth analysis of Trump’s speech at the conference and the reasons behind it

Author: Observer Lao Wang; Source: Crypto Market Observation

A few hours ago, Trump attended the Bitcoin Conference in Nashville and gave a keynote speech.

The full text of the speech can be viewed by replying "Trump" in this public account.

But I recorded the key points as follows:

• Bitcoin is the steel industry a hundred years ago, and I think Bitcoin is still in its infancy. The market value of Bitcoin may surpass gold, but based on the current situation, this is likely to become a reality.

• Ensure America is the Crypto Capital of the World and the Bitcoin Superpower of the World

• The Left is against Bitcoin. Hard.

• Stablecoins will allow us to extend the dollar’s ​​dominance to new areas around the world.

• If I am elected President, this will be the policy I will introduce: The U.S. Government will retain 100% of all Bitcoin currently held as part of the U.S. Government’s eventual rollout plan.

Next, I will explain why Trump made these statements one by one:

1. The US dollar needs a new reservoir

"Bitcoin is the steel industry a hundred years ago. I think Bitcoin is still in its infancy. The market value of Bitcoin may surpass gold, but based on the current situation, this is likely to become a reality."

From the end of World War II until the collapse of the Bretton Woods system in 1972, the US strategy was to maintain a stable ratio of 35 US dollars to 1 ounce of gold, but it gave up after less than 30 years.

The price of gold per ounce has skyrocketed from US$35 to US$2,000. In fact, the price of gold is almost the same as the price increase of US commodities. This is equivalent to a devaluation of the US dollar by dozens of times.

In order to prevent people from rushing to buy gold, the United States used a big move during the Reagan administration to force the interest rate of US bonds to be higher than that of gold, so that it would be more cost-effective for everyone to buy US bonds.

In this way, the hegemony of the US dollar has finally continued for a few more decades.

The high interest rate of US debt is no longer sustainable. In June this year, the US's debt interest payments exceeded its defense spending for the first time!

In theory, if cryptocurrency plays the role of a reservoir, it may become a new reservoir for absorbing US dollars.

2. The reservoir must be managed by itself

"Ensure that the United States becomes the global cryptocurrency capital and the world's Bitcoin superpower"

Why did the United States choose to use gold as a banker after the end of World War II?

Because at that time, the United States' gold reserves accounted for 70% of the world's total!

So how much Bitcoin does the United States hold now?

According to Trump, only 1%.

But now quietly, through ETFs, supporting listed mining farms, etc., American capital has controlled more and more Bitcoin infrastructure.

The surge in Bitcoin must be after American capitalists have absorbed enough chips and computing power, otherwise wouldn’t it be a wedding dress for others?

Building mining farms in the United States also requires a lot of electricity, and the energy industry is also one of Trump’s bases.

3. Why does the left oppose encryption?

The short-term reason is simple, it is inconvenient to collect taxes.

The leftists all over the world are consistent in actively collecting taxes. It’s just that when it comes to spending money, some leftists will provide high welfare to the people, and some leftists will spend money elsewhere.

Therefore, Trump also focused on attacking the Democratic Party’s taxation and inflation hidden tax. The original text of Trump’s speech includes:

The current government’s economic plan includes trillions of new spending and 5 trillion in tax increases.

I will make Trump’s tax cuts permanent and provide substantial tax cuts for families, individuals, and companies that create jobs, including no tax on tips.

Inflation is the destroyer of a country. You can look back at Germany many years ago and see what happened during their huge inflation, which destroyed the entire country.

Bitcoin lovers, I want to tell you that you recognized the dangers of inflation long before most people.

The ridiculous waste of trillions of dollars by our opponents (Democrats) has quickly wiped out 20%, 30%, or even 40% of the value of every dollar. You understand this, but many others don't. The life savings of millions of Americans have been quickly destroyed.

At the same time, this is also his reason for opposing CBDC (Central Bank Digital Currency).

Because CBDC will help the government collect taxes more conveniently.

4. The crypto industry defends the status of the US dollar as a payment

After the decoupling of the US dollar and gold, the value storage property of the US dollar was defended by US debt.

And the one that guarantees the status of the US dollar as a payment is oil.

These measures were established at about the same time, and it seems that their life cycles have also reached the end.

While US debt is unsustainable, with the development of new energy technologies, the status of oil is not as stable as in the past.

In Trump's vision, stablecoins can help the US dollar continue to maintain its dominant position in the future.

Trump's original speech was:

America will be all over the world, America will become richer, the world will become better, billions of people will be included in the crypto economy and deposit their savings in Bitcoin, that's the truth. Those who say Bitcoin threatens the dollar have it all wrong. Bitcoin is not a threat to the dollar. What is really threatening the dollar is the behavior of the current Biden administration.

If people all over the world can buy U.S. stocks and bonds through stablecoins and collect interest on deposits in U.S. banks, how much of a drain will that be on the world?

5. The Federal Reserve plan will be proposed in due course

"If I am elected president, this will be the policy I will introduce: the US government will retain 100% of the Bitcoin currently held, which will be part of the US government's final plan."

In fact, the day before Trump's speech, independent presidential candidate Kennedy Jr. announced that if he was elected president, he would establish a reserve of 4 million Bitcoins.

But in fact, this is a very difficult promise.

A real dealer will never attract chips with great fanfare.

Compared with Kennedy Jr., Trump's speech is much more stable. After all, the price of Bitcoin still depends on the purchase of real money and silver to move it.

Like the governments of many countries, most of the Bitcoin currently held by the US government was obtained through legal actions.

Trump also mentioned in his speech:

"What they took from you, they took your life, your family, your house and your virtual currency. That is the direction this country is heading. This is a fascist regime."

To sum up, the future trend of Bitcoin is probably like this:

Before the election, it depends on Trump's mouth cannon to pull the market;

If Trump is elected, it depends on the US empire to release water to pull the market!