Regulation
How Cryptocurrencies and US Politics Have Become Intertwined
With four months to go until the US presidential election, Bitcoin has emerged as a flashpoint in American politics as contenders battle to impress the country’s huge, crypto-loving voter base.
Whether it’s Donald Trump’s burgeoning campaign or Kamala Harris’ defensive stance, neither can get away with the word cryptocurrency anymore, with over 50 million registered voters in the United States holding virtual assets.
The way Bitcoin has become intertwined with US politics was evident from the fact that just a few hours after the Trump assassination attempt, the price of BTC skyrocketed and crossed the $63,000 mark. Trump received a staggering 70% chance of winning the presidential race after the attack, as BTC rose 9% in a day!.
It’s not just Bitcoin, though, as Trump-themed meme coins have also seen a surge in value over the past week. Super Trump ($STRUMP), for example, is up 38%. NFTs have also been affected, with Trump Digital Trading Cards hitting a peak in popularity.
This correlation indicates a consensus among cryptocurrency investors that Donald Trump in the White House promises a better future for cryptocurrency. But is there any truth to this? And why do cryptocurrency investors think this way?
Why Cryptocurrencies Matter in the US Elections?
The relationship between Bitcoin and elections is complex and multifaceted. While Bitcoin’s recent price fluctuations have certainly been influenced by political rhetoric and events, its future success will depend on a combination of economic, technological, and social factors.
Cryptocurrency investors have a lot at stake in this election. Whoever the next president is, tackling cryptocurrency regulation will certainly be on their agenda, as the digital currency continues to grow in popularity. Just as most people would prefer to keep their vote private, many online gamblers prefer to gamble without providing their personal information. For privacy-conscious gamblers, cryptocurrencies have always been a useful tool, offering greater anonymity, especially on sites that do not enforce Know Your Customer (KYC) procedures. The problem is, nowadays, a real casinos without KYC can be hard to find. This list collects the best platforms available today.
The Trump Factor
So what is causing the correlation between Bitcoin’s price and Donald Trump’s candidacy? There are several interconnected factors. First, Trump’s selection of Senator J.D. Vance, a well-known cryptocurrency enthusiast, as his running mate has fueled speculation about a potential pro-crypto stance from a Trump administration.
Trump has since played into this speculation, speaking out in support of domestic bitcoin mining, a practice Biden has proposed taxing heavily. Further pushing this perception, in May, Trump’s campaign began accepting donations in the form of cryptocurrency.
As if to put the cherry on the pro-crypto cake, it was recently announced that Donald Trump will be speaking at the Bitcoin 2024 conference in Nashville, Tennessee, in late July.
It’s clear that Trump is deliberately branding himself as the crypto-friendly presidential choice. But those who remember his remarks before the election might raise a skeptical eyebrow.
Trump has publicly stated that cryptocurrencies are “based on nothing” and “look like a scam.” Despite this criticism, Trump’s recent actions indicate that his perspective has changed.
Market Trends
While cryptocurrency market trends point to support for Trump, it’s worth remembering that Bitcoin has seen spectacular growth under Biden. Bitcoin has surged 400% since Biden’s election in 2020, and the approval of Bitcoin exchange-traded funds in January has inspired billions of dollars in Bitcoin investment. While there have been some bumps along the way, the first half of 2024 has been bullish for Bitcoin. When prices soared to all-time highs in March, the media was quick to point to the election as the cause, but there are other factors at play. The 2024 election comes amid economic concerns, with inflation remaining a top issue for voters. Bitcoin’s recent success can be attributed in part to its known inflation-hedging properties. Investors are favoring Bitcoin as a potential hedge against a weakening dollar.
Conclusion: after the elections
Regardless of who wins the presidency, the 2024 election has brought cryptocurrency and cryptocurrency betting sites back to the center of national debate. As is always the case with increased public awareness and media attention, this presents both opportunities and problems for Bitcoin. On the optimistic side, any political move toward clearer regulations will likely increase investor confidence. Additionally, as the old adage goes, any publicity is good publicity. Increased public awareness of Bitcoin could lead to wider adoption, increasing demand. However, increased attention could lead to tighter scrutiny and more stringent regulation, potentially stifling innovation within the cryptocurrency space.