The intersection of Bitcoin and Trump: the game of freedom and control

Author: YBB Capital Researcher Zeke

1. What doesn't kill me makes me stronger

"I'm Back, Bitches!" This sentence is for all doubters and those who take advantage of others' misfortunes.

The first former president in history to be convicted, a "tech madman" who flirts with women everywhere and claims to plug brain-computer interfaces into humans and send them to Mars, some old subordinates who have fallen apart and enemies who were on the opposite side in the past, plus a cryptocurrency that has been declared dead hundreds of times by the mainstream media since 2011. This seemingly twisted and absurd combination constitutes all the obvious chips of the Republican Party in the 60th US presidential election. If Trump is the axis, the team still looks very fragile. Musk and Vance, the two core figures of the team, have publicly criticized his policies many times, and he himself has publicly criticized Bitcoin many times since 2019, regarding it as a Ponzi scheme and a tool for money laundering.

But "the world is bustling, all for profit; the world is bustling, all for profit", whether it is people or things, as long as there is an intersection of interests, it is natural to temporarily ignore the differences. For Trump, this is a battle of life and death, a battle for family honor. For Musk, this is a battle for the future of mankind. For Vance, this is a battle to defend the old American dream and the new Silicon Valley. All these obstacles converge at this moment: the Democratic Party.

Since God cast the first vote in Pennsylvania, the balance of victory has begun to tilt. The Democratic Party tried its best to stop the victory of the Trump team, replacing the old politicians in the party, bringing in Hollywood stars, and spending a lot of money on media publicity. On November 6, the voting deadline, unlike the situation before the vote that the mainstream media in the United States said was the most tense in history and Harris's slight lead in the polls, the Republicans won all seven swing states and the battle ended in half a day. Trump finally defeated the Democratic Party's comprehensive hunting with a crushing momentum. One of the key trump cards of the Republican Party is the silent majority, that is, the lower-class legal citizens who are oppressed by illegal immigrants and liberal totalitarianism. They don't speak out on social media, but they will cast the right vote. The man wearing a red MAGA hat returned to the White House again.

In this wonderful US election, I can understand the motivation of everyone in Trump's team to stand with Trump, but why did he choose Bitcoin? A more common explanation is that cryptocurrency holders in the United States account for 13% of the total population, and Trump needs to please these voters. According to his own explanation, Bitcoin can be used to repay the 35 trillion US dollar national debt and replace gold as a new strategic reserve. These two reasons, the former seems a bit reluctant, and the latter seems a bit outrageous. In order to convince myself, I have read a lot of articles and videos of traditional financial bloggers from the 6th to now. I think the answer is that Bitcoin has multiple intersections with the United States led by Trump and Musk in the next four years: energy, anti-Federal Reserve, anti-Democratic Party, anti-big governmentism and new symbols of the old American dream.

Second, Energy

Politicians’ true purpose is always hidden under those high-sounding reasons. Let’s review the strangest point in Trump’s vision for the future of Bitcoin: In June this year, Trump posted on Truth Social late at night, “Bitcoin mining may be our last line of defense against CBDC (Central Bank Digital Currency)… We hope that all the remaining Bitcoins are made in the United States!!! This will help us dominate the energy field.”

There are many similar speeches, such as hoping that all the remaining Bitcoins will be labeled as made in the United States, making the United States the capital of encryption. The meaning conveyed by these speeches is to maintain a united front with grassroots voters, resist the Democratic Party’s tyranny over Crypto, resist CBDC, and resist Bitcoin produced in Europe and Asia. But these speeches cannot withstand our careful scrutiny. Whether Bitcoin is labeled Made in the USA does not seem to have much to do with the above points. Trump's real purpose is actually hidden at the end of the sentence, which is to develop energy. The main donors behind Trump are: Kelcy Warren, CEO of Energy Transmission, Harold Hamm, founder of Continental Resources, Jeff Hildebrand, CEO of Hilco Energy, Timothy Marvin Dunn, CEO of CrownQuest Operating, and Koch Industries, the largest oil company in the United States. Funds from the oil industry are the main source of funds for Trump's second campaign. The renewable energy power generation promoted by the Democratic Party has greatly hindered the development of these traditional oil industries. Trump's intention is to strengthen the use of fossil fuels, use fossil energy to generate electricity, and do whatever consumes oil, so that drilling can be carried out crazily.

Musk's dream of Mars is also closely related to the energy industry. What are the obstacles to landing on Mars? The first is energy, followed by rocket launch costs, AI robots, and communications. These four points correspond to Musk's Tesla electric cars, SpaceX, Tesla robots, and Starlink. But now the biggest obstacle to immigration to Mars has become the government. Most of the donations from the car companies behind the Democratic Party come from traditional car companies such as General Motors and Ford. Although the Democratic Party has implemented the Clean Energy Act and electric vehicle subsidies, these will naturally exclude Tesla. Although the US re-landing plan was initiated during Trump's last term, most of the $146 million orders were allocated to SpaceX. But after Biden came to power, NASA directly redistributed the orders, greatly reducing the number of SpaceX's orders. SpaceX only received 9.4 million orders, and the bulk of them were allocated to Bezos' Blue Origin. The most important problem is that the Democratic government has been making things difficult for SpaceX's rocket launches through environmental supervision, and its reasons are also ridiculous, such as whether it will hit marine life and pose a threat to the marine environment. Starlink played a vital role in Ukraine in the Russian-Ukrainian war, but the usage fee has not been received. Musk, who originally chose to shut down the Ukrainian Starlink business, had to open Starlink again under the demonstration of the Democratic Party.

All in Trump is Musk's only choice, and energy policy and aerospace contracts will be the bargaining chips that Trump will exchange with him. In addition to reviving fuel vehicles, all of this coincides with Trump's anti-extreme environmental protection policy, and the two naturally hit it off.

In addition, energy also plays an important role in the development of AI. I said in last year's article "Prospects of Potential Tracks: Decentralized AI Computing Power Market" that computing power is the oil of the future. If this oil is divided into two parts, it is electricity and chips. "The number of tokens per dollar per watt" represents the future productivity. The development of the energy industry is also for the United States to maintain its lead in the key technology of AI, which also meets the needs of the new Silicon Valley forces behind Vance. Therefore, Bitcoin mining is just a cover for Trump. Made in the USA is not necessarily related to preventing CBDC and preventing other countries from mining. Trump may not understand Bitcoin and does not need to understand it too much. He just needs to know that people really like this thing and it really consumes electricity.

Third, anti-Fed

Zuckerberg was once the number one fan of the Democratic Party. In order to show his loyalty to the Democratic Party, he banned Trump's social media account as soon as he stepped down. Trump has repeatedly declared that if he has the opportunity to take office again, he will first put Zuckerberg in jail. However, such loyalty did not win the Democratic Party's compromise on Libra. Zuckerberg may not really understand that this is a declaration of war on the Federal Reserve, the largest private bank in the United States. Meta's end is a stock price crash and the metaverse has become a bubble, but Zuckerberg is still lucky compared to past politicians.

There are two presidents who wanted to move the Federal Reserve in history. One is Lincoln who wanted to take back the coinage right, and the other is John Kennedy who wanted to issue a silver-based currency backed by silver. The final result was naturally a gunshot. But Musk and Trump still want to be the next challenger of the Federal Reserve. In the last term, Trump publicly expressed his dissatisfaction with the Federal Reserve's interest rate hikes several times. The independence of the Federal Reserve prevented him from intervening in monetary policy, and in the next term he hopes to directly fire Federal Reserve Chairman Jerome Powell. Musk tried Tesla to use Bitcoin payment in the last encryption cycle, but eventually claimed that Bitcoin was not environmentally friendly and suspended Bitcoin payment. Of course, I prefer to believe that the fundamental intention of using Bitcoin payment is to challenge the US dollar, and the reason for the final suspension must not be environmental protection.

No destruction, no construction, is the consistency of the three. Trump is the craziest politician, Musk is the craziest entrepreneur, and Bitcoin is the craziest currency. Perhaps there is nothing in the world that they dare not challenge. In a post by a senator on November 8, Musk replied with an emoji "?", which means 100% support. The content of the post is as follows: "The executive branch should be under the leadership of the president. This is the design of the Constitution." He also added the tag "#EndtheFed" to the post. He wrote: "The Federal Reserve is one of many examples of where we have deviated from the Constitution in this regard. This is another reason why we should "end the Fed."

Let's review Trump's promise to Bitcoin again, using Bitcoin to repay US debts and establish a strategic reserve of Bitcoin, and Bitcoin will eventually surpass gold. Anyone who can do elementary school arithmetic knows that this is nonsense. For example, 1% of the total Bitcoin reserves in the United States is not even enough to pay the interest on US debt for a week. But what is the implication? It is Trump who wants to take over the currency power, and Bitcoin, as the number one ridiculer of credit currency, is the most appropriate to take the lead in this anti-Fed movement. It not only grasps the hearts of civilian supporters, but also grasps the Democratic Party. If the Federal Reserve can be defeated in the end, Trump will not only be the most powerful president in recent decades, but also the only president in the history of the United States who has all the power.

Fourth, anti-big governmentism

I will skip the content about anti-Democratic Party here. There is a more wonderful description in "33 Years of Crypto War: Started with Biden and Ended with Biden" written by an author named Chao. Let's mainly talk about what is the big government of the Democratic Party and what is the small government of the Republican Party.

Jefferson once set a rule for the young America, "the best government is the smallest government". The so-called small governmentism is the political proposition of the Republican Party for many years, that is, low taxes, less regulation, and emphasis on personal freedom and market mechanisms. The Democratic Party tends to favor big government, high taxes, strong regulation, and emphasizes social equity and public services. The anarchism advocated by Crypto is actually very close to small government. They are essentially more inclined to free markets and personal freedom, but small government believes that it is necessary to retain a minimal government to maintain personal freedom.

In the process of crypto integration with the United States, we may see the Republican Party push the on-chain form towards small government, thereby launching another attack on the Democratic Party. In the past four years, the Democratic Party, which has incorporated extreme left-wing liberal ideas, has completely degenerated into the government's exploitation of legal American citizens. An unprecedented moral kidnapping has washed the United States bloodbath. We have seen that the so-called compensation for social injustice through government power has evolved into connivance and even support for various extreme movements. Rainbow flags, robbery, and drug use are common. Smugglers arrange hotels and even shopping cards, and their welfare is above that of citizens. This is the current situation in the United States. The purpose of the Democratic Party is obvious. By exploiting and brainwashing citizens, they can achieve the stability of rights. Even if they lose some citizen votes, they can exchange for more votes from smugglers and extreme leftists. What Trump wants to cultivate may be a compliant crypto world, in which citizens can conduct financial activities more efficiently and freely. The election fraud that he hates most may also be realized through blockchain in the future. Blockchain will take back the four years lost by the Republican Party and consolidate the position of the Republican Party after 28 years.

V. New Symbols of the Old American Dream

The so-called new American dream is the immigrant elite represented by Kamala Harris. She is the first female vice president and an African and South Asian immigrant, which perfectly meets the "political correctness needs" of the Democratic Party. She is a symbol of the immigrant "American Dream" in the context of the multicultural era in the United States, representing the cultural concept of openness and integration. The representative of the old American dream is the struggler represented by JD Vance. As a civilian child born in the Rust Belt, he is a soldier, writer, businessman, and also the next vice president of the United States and the new Silicon Valley talker. He represents the idea that early Americans believed in that they would eventually become wealthy through their hard work, courage, creativity and determination, namely democracy, rights, freedom, opportunity and equality.

As Trump's deputy, his buff is perfectly stacked. And the intersection of Bitcoin or Crypto and the old American dream, I think, is a perfect match. The essence of Pow is that the more you invest, the more you earn. In the parallel world of blockchain, miners are absolutely equal. And this American dream has a better interpretation in third world countries. They can use stablecoins or even Bitcoin in the blockchain for transfers and payments, thereby bypassing banks and unreliable small government currencies. They can also find freedom and opportunities in DeFi or on the chain. If Trump keeps his promise, then the next Web3 will be an "American Dream" for crypto users all over the world.

Conclusion

Nakamoto once wrote a reply to BM (founder of EOS), "If you don't believe me or can't understand me, then I don't have time to convince you, sorry. We have passed the era of explaining to others what Bitcoin is and whether it is a Ponzi scheme. It has never failed in 16 years. It is there. It exists on the other side of the Atlantic and around you and me."

I don't dislike the Americanization of Bitcoin. Any country, institution or individual can buy Bitcoin. Encryption is free. Controlling Tokens does not mean controlling the network. Everything that happens on the Bitcoin blockchain is still decentralized. But I dislike always mentioning encryption and politics. First of all, I really don't understand American politics. Secondly, as an industry that combines finance and emerging crypto technology, we have spent most of the past year talking about politics, which is absolutely abnormal for any developing technology industry. Bitcoin and the Republican Party are on an equal footing in this election, each taking what they need, but Crypto other than Bitcoin is not.