Trump: BTC surpasses gold, the United States must keep 100% as a strategic reserve

Original | Liu Jiaolian

Overnight this morning, Trump attended the "Bitcoin 2024" event held in Nashville, the "provincial capital" of Tennessee, as scheduled, and delivered a keynote speech. Yesterday, Kennedy Jr.'s speech on his willingness to include Bitcoin in the US national reserve was introduced in the 2024.7.27 article "Bitcoin will enter the era of national reserves". Trump's arrival and his unique agitational speech have once again brought this theme to a new climax.

Just when Trump was making his keynote speech, at about 4 a.m. Beijing time, the long and short sides launched a fierce battle for positions around BTC. Just like what was written in the 2024.7.14 Teaching Chain article "Bullets shot at Trump, but killed the bear market", this time at the "Bitcoin 2024" conference, the forces behind the shorts launched a "sniper attack" on BTC in the crypto market, pushing the battle line from 69k on the 27th to 66.6k, trying to extinguish the raging fire of Trump's encouragement of Bitcoin's prospects.

However, the longs quickly organized a position defense battle, successfully defended and counterattacked, and resolutely defended the 68k defense line. The bullet shot at Trump was dodged by him turning his head, and the shorts' sniper attack on BTC failed. The fierceness of the game behind the scenes can be seen.

Trump said, "(Bitcoin) is like the steel industry 100 years ago", "It is still in its infancy", "One day, it may surpass gold. According to the current trend, this is entirely possible."

When Jiaolian wrote the article "Bitcoin is in full swing" on December 4, 2023, the price of BTC was $40,000, with a market value of nearly $800 billion, while gold was nearly $14 trillion, and the former was about one-seventeenth of the latter.

Today, BTC has reached $68,000, with a market value of $1.34 trillion, which is already one-twelfth of the gold market value of $16 trillion.

If BTC catches up with the current gold market value of $16 trillion, it can be easily calculated that the price of each BTC will be magnified 12 times to more than $800,000.

Trump said, "Bitcoin and cryptocurrencies will drive our economic growth, consolidate America's financial dominance, and strengthen the entire country for a long time to come."

He used his influence to popularize science: "Many Americans don't know that the US government is one of the largest holders of Bitcoin." "The federal government owns nearly 210,000 Bitcoins, accounting for 1% of the total supply."

Then he criticized the US government for violating the "HODL" principle and selling BTC several times. Judging from Trump's proficient use of the crypto jargon "HODL", he and his team should have done their homework carefully.

Regarding the holdings of various governments, readers can review the article "Don't be afraid of the selling pressure from various governments, this cycle is enough to neutralize it all! "" published by Jiaolian on July 9, 2024. Among them, the German government has already cleared its positions. If the US government, which holds the largest amount of Bitcoin, really HODLs as Trump said, then it will obviously greatly reduce the uncertainty of selling pressure, which is definitely a big positive.

Trump shouted: "Never sell your Bitcoin."

So he made a major announcement on the spot. He said, "I declare that if I am elected, my government's policy will be that the United States will retain 100% of all Bitcoin currently held or acquired in the future." "This will actually serve as the core of the country's strategic reserve of Bitcoin." Trump was passionate: "My promise to everyone is that I will be the pro-innovation, pro-Bitcoin president that the United States needs. This will be a prosperous industry, a great industry." Of course, what was the point that won the loudest applause in Trump's speech? Dear readers, you can guess. It was when he announced that "On the first day of my term, I will fire Gary Gensler and appoint a new SEC chairman." In fact, before the current SEC Chairman Gary Gensler took office, the entire US crypto industry still had high hopes for him. Because as a technical bureaucrat, he has taught Bitcoin-related courses in American colleges and universities, and should know more about cryptocurrencies.

However, Gary Gensler's performance surprised the industry. Although he approved the spot Bitcoin ETF and the spot Ethereum ETF during his tenure, which was enough to leave a name in the history of crypto development, his conservative nature and refusal to change forced him to suffer the fate of being called on to step down by the entire industry and even more and more people.

As early as the beginning of last year on February 14, 2023, Jiaolian introduced in the article "He vowed to bring down the SEC chairman" that Messari founder Ryan Selkis once fired at Gary Gensler: "My new goal in life is to end Gary Gensler's political career and make him the reason for Biden's failure to be re-elected."

In Jiaolian's view, Gary Gensler's problem is not that he is ignorant or overly cautious, but that he insists on using old methods to manage new things and suppresses public opinion with selfishness. This seriously violates the laws of historical development and will inevitably hinder the industry's innovation and the world's progress. Specifically, it is what the teaching chain analyzed in [“7.25 Teaching Chain Insider: The market expects the Federal Reserve to cut interest rates by 100% in September”], "Gensler has always insisted that there is no need for separate legislation for crypto regulation, and advocated that the Securities Act of 1933 and the Securities Exchange Act of 1934 are perfectly applicable to the regulation of crypto, which is a hidden intention of settling accounts later. After all, no crypto project was done before 1933..."

His proposition is as absurd as advocating the use of postal management ideas to manage email, newspaper management ideas to manage public accounts, television management ideas to manage short videos, SMS management ideas to manage WeChat chats, and physical store management ideas to manage Internet e-commerce...

The Democratic Party, which should be left-wing progressive, has become an image that hinders innovation and technological progress. The Republican Party, which was originally right-wing conservative, suddenly turned to support Bitcoin and the cryptocurrency revolution.

Republican Trump said, "The Biden-Harris administration's suppression of cryptocurrencies and Bitcoin is wrong and very detrimental to our country. This is un-American."

The two parties have fought for many years, and in the end, they have become like each other.