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Cryptocurrency News Articles

Bitcoin Is Finally Getting Its Due Recognition. Here Are the Top 4 Good News That the Trump Presidency Has in Store for Us

Nov 07, 2024 at 12:05 am

Donald Trump knows that the dollar is the cornerstone of American power. The liquidity of Treasury bonds makes it the preferred reserve asset

Bitcoin Is Finally Getting Its Due Recognition. Here Are the Top 4 Good News That the Trump Presidency Has in Store for Us

Bitcoin is finally getting its due recognition. Here are the top 4 good news that the Trump presidency has in store for us.

Bitcoin vs Dollar

Donald Trump knows that the dollar is the cornerstone of American power. The liquidity of Treasury bonds makes it the preferred reserve asset for exporting nations. This so-called “petrodollar” system allows the United States to maintain a juicy trade deficit without suffering from a devaluation of its currency.

In other words, the petrodollar enables Americans to exchange oil, metals, rare earths, foodstuffs, etc., for debt acknowledgments. Such is the exorbitant privilege that the BRICS are seeking to put an end to.

The economic protectionism promised by Trump suggests that trade agreements will tighten as the BRICS distance themselves from the dollar. Nevertheless, a global reserve currency cannot simply be decreed, even for the BRICS.

Bitcoin thus arrives at a crucial moment with an irreplaceable asset: its finite money supply of 21 million BTC. It is also a stateless currency that no nation can confiscate. These two technological breakthroughs predispose it to become an international reserve currency.

“If I am elected, my government will keep 100% of all the bitcoins that the U.S. government currently holds or acquires in the future”, said Donald Trump at the Nashville bitcoin conference last July.

He also stated that “it is the current government policy that threatens the dollar, not bitcoin”.

In the face of the inevitable erosion of the dollar’s usage worldwide, acquiring a “strategic reserve of bitcoins” before everyone else could prove to be a poker move worthy of the petrodollar.

Here is a recent report written by the Bitcoin Policy Institute explaining in detail why the United States would do well to embrace bitcoin as an international reserve currency.

Bitcoin Mining

The geopolitical power dynamics of the 21st century are fundamentally a competition between global technological networks. The United States has dominated for decades with the internet, GPS, Microsoft, Facebook, etc.

The dollar and the SWIFT network are two other important examples of this control. Unfortunately, large-scale financial sanctions (freezing of Russian foreign reserves and disconnection from SWIFT) will necessarily lead to the emergence of alternative networks and stores of value.

Nations refusing to align with American imperial foreign policy have taken note of the freeze on Russian reserves. China or Saudi Arabia do not want to lose several hundred billion dollars overnight.

Hence the bitcoin solution, which is both a payment network and a reserve currency. Two-in-one. However, nations without their own bitcoin miners become dependent on the rest of the world for their transactions. Donald Trump understands this. “I want all remaining bitcoins to be mined in the United States”, he stated.

Will China take note, having stopped placing its surpluses in American debt:

Bitcoin also helps avoid the waste of renewable energy surpluses. This financial boon helps energy producers finance the energy transition and stabilize the electrical grid since miners can interrupt their operations on demand.

It is time for the old continent to realize that the Bitcoin industry has many virtues. Deutsche Telekom, the largest telecommunications provider in Europe, has just announced it will enter into bitcoin mining to capitalize on its renewable energy surpluses. And EDF?

Legal Tender?

Bitcoin is legal tender in El Salvador. Anyone can pay in BTC without worrying about calculating and paying capital gains tax. And what could be more normal for a currency.

Senator Cynthia Lummis – who has drafted a bill to create a federal strategic reserve of one million bitcoins – intends to eliminate taxes on purchases in BTC below a certain amount.

The end of this tax is highly anticipated. Perhaps Donald Trump will abolish it. This would align with his intention to reduce taxes. This scenario is so anticipated that even Michael Saylor was caught up in a recent fake news story to that effect:

Bitcoin is no longer the bogeyman once feared by bankers. They have realized that it is not a threat to the fiat system. While bitcoin has the advantage of existing in limited quantity, fiat money has the advantage of being created ex nihilo.

The tool of credit is indispensable. A complex society needs it to finance nuclear power plants, rail networks, high-voltage lines, and all other very capital-intensive infrastructures that amortize over the long term.

Another reason to be optimistic is that Vice President James David Vance holds between $250,000 and $500,000 in bitcoins. Elon Musk – a fervent supporter of Trump – himself holds several tens of thousands of BTC through his companies Tesla and Space X.

There is no doubt that the billionaire will advocate for banks to accept bitcoin as collateral to borrow dollars. According to Michael Saylor, this banking service will be the engine of the next Bull Run, attracting treasurers from all multinational corporations.

Bitcoin Strategy

The arrival of a pro-bitcoin president in the White House will lift the anathema on bitcoin. This favorable political context, combined with BlackRock’s ETF, should encourage major multination

News source:www.cointribune.com

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