- Bitcoin is centered around the freedom to use it anywhere.
- Forbes recently stated three reasons why President Trump’s efforts actually mean something good for Bitcoin.
Bitcoin has been around now for over a decade, but there are still many people that doesn’t quite understand how much value it holds. The people who actually know about it understand the way that it acts as both a store of value and a medium of exchange, but the concept of being an apolitical asset is a little difficult to wrap the brain around.
For many people, the only way to fully understand what Bitcoin can do is by seeing the way that it can be used in the real world. According to Forbes, finding that use case is exactly where U.S. President Donald Trump comes in.
President Trump has tweeted fairly recently that he isn’t a fan of Bitcoin or Facebook’s Libra. However, aside from the fact that these two cryptocurrency assets are actually nothing like each other, the way that the president is handling the economy lately. Much of Bitcoin’s use in countries around the world have been due to authoritarian regimes and, while the United States is pretty far away from that, the president has still been a part of the education to the masses as to why Bitcoin could be useful as a protection from the legacy financial system.
There are three main reasons that Forbes believes that President Trump is good for Bitcoin, starting with currency wars. Previously, Trump has criticized the use of low interest rates and quantitative easing, but he’s flipped his stance lately, hoping to devalue the US dollar and to potentially fire the Federal Reserve Chairman, Jerome Powell. It is clear that the US government may soon have no choice but to do so, due to the constant spending of Congress.
Much of the reasoning for lowered interest rates appears to be entirely due to other central banks doing so. With this change, combined with the upcoming halving event for Bitcoin is a “perfect storm for Bitcoin,” according to multiple speakers at the 2019 Bitcoin conference in San Francisco last month. Ultimately, the idea is that investors will be faced with the necessity of using stores of value beyond fiat currency, like gold and Bitcoin.
With the current uncertainty in the industry regarding global monetary and fiscal policy, the boost in Bitcoin interest lately from major retail investors. Pantera CEO Dan Morehead even predicted that this year could see Bitcoin reach $42,000.
The second reason that Forbes sees President Trump as a positive thing for Bitcoin is due to threats to block international remittances. In recent news, and on multiple occasions, the president has threatened that he would keep individuals in the United States from sending money to family members in other countries. Originally, these claims were made during Trump’s run for president in 2016.
The plan, which he voiced at the time, was to limit the remittances that individuals could send to Mexico, which was meant to persuade the government to pay for the wall that he was so vocal about. Genesis Mining, a Bitcoin mining firm, had mocked the claims with billboards soon after.
In April, the White House released a statement that they were targeting remittances to help with the many migrants at the southern border. Not letting this idea go anytime soon, Trump tweeted that he may add on more fees and taxes for any remittance that is meant to go to Guatemala. For consumers that want to avoid these types of limits on their remittance, Bitcoin could be exactly what consumers need to maintain their financial freedom.
The third and final reason that Trump’s influence is a positive force for Bitcoin is for the push against end-to-end encryption from various government agencies, which could be the biggest supporting fact. Through the last month, multiple members of the White House staff, the US Attorney General William Bar, and director Christopher Wray of the FBI have all had the worse to say about the use of applications that include this type of encryption. Some parties have even recommended that end-to-end encryption should be banned.
These arguments are no different what has been brought up in the Crypto Wars of the 90s. In fact, this legal precedent contributes to the theory of Abra CEO Bill Barhydt, concerning how it would be difficult for a ban on Bitcoin to be implemented at all in the United States. In fact, one economist claimed that the only way to actually eradicate the use of Bitcoin is the come up with a digital asset that can compete with Bitcoin, which is highly unlikely.
At the core of all these problems is the theory that the government just wants to be able to see every single thing that every citizen is doing at any given moment. With the threat of a literal dystopian nightmare, Bitcoin could be the saving grace, and Trump’s decision to constant try to tear away these freedoms would be what keeps the market alive.
Presently, Bitcoin is priced at $10,087.10, rising by 3.28% in the last 24 hours.