- Donald Trump supports BTC as a strategic reserve asset.
- Trump’s pro-crypto stand has inspired a voting block of crypto executives and owners.
In a massive turn of events, former President Donald Trump has changed his opinion on cryptocurrencies, which he once despised. His narrative aims to challenge and defeat current President Joe Biden by winning the votes of young crypto enthusiasts and wealthy stakeholders.
However, Trump is not a long-time fan of cryptocurrencies and expressed his disdain for cryptocurrencies when he was president in 2019.
In 2019, Donald Trump declared that BTC and other cryptocurrencies are not money and are highly volatile. Through a series of tweets, he stated,
“I am not a fan of bitcoin and other non-money cryptocurrencies whose value is highly volatile and based on thin air. Unregulated crypto assets can facilitate illegal behavior, including drug trafficking and other illegal activity.”
He further added,
“We only have one real currency in the US and it is stronger than ever, reliable and trustworthy. It is by far the most dominant currency anywhere in the world and will always remain so. It’s called the US dollar!”
However, Donald Trump has now reversed his stance after meeting with cryptocurrency miners and raising $100 million for his 2024 campaign. He urged cryptocurrency users to vote for him as he opposes Biden’s hatred of Bitcoin.
Politicians support BTC/USD
Recently, Trump endorsed BTC as a strategic reserve asset. With Trump’s voice in the mix, various politicians have expressed support for BTC.
According to reports, former presidential candidate Ramaswamy advised Trump to consider backing the US dollar with various commodities, including BTC, to maintain the dollar’s value.
Senator Cynthia also advocated for the Federal Reserve to add BTC to its currency. Led by Trump, these Republican politicians see BTC as a store of value and good for the economy.
The success story of El Salvador and MicroStrategy
Various companies have adopted BTC as reserve assets and it is a success story for corporations like MicroStrategy.
In 2020, MicroStrategy announced that it began accumulating BTC as treasury reserve assets. After a decade of underperformance, MicroStrategy’s stock price has risen more than 900%.
He is currently the largest corporate BTC holder with over 226,000 BTC. El Salvador has been using BTC as a reserve asset since 2021.
Following the election of current President Bukele, the country announced its intention to accumulate BTC as a reserve asset. Since buying BTC in 2021, the tokens have accumulated over 50% in gains and the president intends to hold on for the long term.
What Trump’s re-election would mean for cryptocurrency
Source: X
Notably, the possible re-election of Donald Trump would make him the first president for BTC in the United States. In essence, his election would play a key role in establishing better regulatory clarity.
Cryptocurrency needs clear, consistent and fair regulation while protecting investors, and a pro-crypto regime would help ensure that clarity.
With clear regulations, it would be easy to discuss and understand the impact of digital currencies on the US and global economy.
Finally, Trump’s re-election would lend legitimacy to cryptocurrencies, prompting other governments and states to embark on crypto-friendly regulations.
Legitimacy means higher adoption, usage and profitability for investors, while supporting the decentralization of the world’s currencies.