The crypto community responded enthusiastically when Donald Trump emerged victorious in the American elections. As someone deeply invested in the ideals of blockchain and decentralized systems, I find myself navigating a complex mix of hope and healthy skepticism.
Trump’s recent pro-crypto rhetoric has undeniably fueled optimism within the industry, but also raises questions about the future stability and true independence of crypto.
Industry enthusiasm amid partisan issues
Trump’s promises to transform the United States into a “crypto capital” and his public support for Bitcoin have resonated with many in the industry.
Accepting Bitcoin donations, promising to free Ross Ulbricht and fire Gary Gensler, while suggesting the creation of a national Bitcoin reserve all indicate a possible shift toward a more favorable regulatory environment. These developments are undeniably exciting for an industry that has long struggled with uncertainty and sought mainstream legitimacy.
A look at Trump’s history, however, calls for a degree of caution, as his record in business and politics often reflects decisions that serve immediate interests, sometimes at the expense of long-term considerations. For example, unlike most other presidents before him, Trump did not divest from his business interests while in office, leading to claims of more than 3,700 conflicts of interest during his four-year term.
Although one of his companies is now in the DeFi space.
We can all benefit from any perceived selfish move that boosts his World Liberty Finance project. He also has an NFT collection that the SEC under Gary Gensler may disapprove. Thus, an overhaul of the way NFTs are viewed from a regulatory perspective would also benefit Trump’s personal and commercial interests.
So is his newfound support for crypto a genuine commitment, a strategic move to capitalize on the industry’s momentum, or for personal gain? In the end, do we in the crypto industry care either way?
If something is done for selfish reasons, but millions of people enjoy the benefits, is that wrong?
Ultimately, the risk of any politician campaigning to court Bitcoin voters lies in the possibility that the support could be transitory, potentially leading to instability or abrupt policy changes that could hobble the industry.
Remember, he spent much of his campaign discussing “crypto” alongside Bitcoin. He personally owns Ethereum and an Ethereum NFT project, but does not own Bitcoin.
So, is Donald Trump’s next presidency better for altcoins than for Bitcoin?
While I’m not a full-blown Bitcoin Maxi, I believe that Bitcoin should be at the center of the conversations, and that Trump needs people around him who really understand Bitcoin. Interestingly enough, a recent one tweet by American Major and Softwar author Jason Lowery indicates that he may move to DC for this.
Will Trump continue to heed the advice of David Bailey and others on Bitcoin, or will he align himself more closely with ally and sometime Bitcoin skeptic Elon Musk?
How will Trump continue to embrace Bitcoin and crypto?
If Trump follows through and insists on keeping Bitcoin on the United States’ balance sheet – a task he cannot do alone – it will undoubtedly improve the US’s standing among global central banks. If the US takes the first step in stockpiling Bitcoin, we could see a groundswell of other countries looking to follow suit.
Ridding the SEC of Gary Gensler and replacing him with a pro-crypto official could usher in a new era of tokenized assets unlike anything we’ve seen before. However, Singapore’s ‘pro-crypto’ regulatory environment shows that this does not necessarily lead to increasing decentralization. Singapore has a system that favors regulated, KYC-compliant stablecoins over a free and open Bitcoin-centric ecosystem.
A pro-crypto Trump presidency must set a standard for what blockchain truly represents: access to finance for all without centralized control. Achieving this could inspire other regions, such as Singapore and the EU, with increasingly strict regulations, to rethink their approach.
Should Bitcoin achieve what many dream of – becoming the world’s reserve currency – it is unlikely to be good for the dollar. The more Bitcoin the United States owns, and possibly Trump himself, the better for those who believe in Bitcoin’s ability to replace the traditional financial system.
In my opinion, Trump personally buying Bitcoin would be one of the most bullish events possible to gauge what the next four years will bring.
Politics and Bitcoin
I still believe that Bitcoin is and should remain bipartisan, with no single figure being held in higher esteem than others. People have flaws and Bitcoin’s code is much less vulnerable. United States citizens must ensure that Trump keeps his promises for Bitcoin and the broader crypto industry.
Trump promises
Like any politician, he made a lot of promises during his first presidential campaign – some kept, some not… although, to be fair, the same could be said of almost all elected officials.
I will briefly recount the failures and successes of his first presidency.
In 2016, he failed to repeal and replace the Affordable Care Act, leaving millions of people without health insurance. He did not protect pre-existing conditions as promised, and supported legal efforts to repeal the ACA. His promised tax cuts mainly benefited the wealthy and corporations, not the middle class.
The border wall with Mexico remained largely unbuilt, with only 75 kilometers of new barriers built where none previously existed, and Mexico did not pay for them.
Trump’s promise to eliminate the federal deficit went unfulfilled; instead it rose by more than 60%. However, it is demonstrably unfair to place full blame on him without acknowledging the role of the pandemic.
His promise to revive the coal industry fell short, as coal jobs continued to decline during his administration. Trump also failed to release his tax returns, despite repeated promises to do so.
These unfulfilled promises demonstrate the gap between campaign rhetoric and actual policy outcomes, and underscore the importance of critically examining Bitcoin political promises.
Trump achievements
Still, President Trump made some notable achievements during his 2016 term. In criminal justice reform, he championed the bipartisan First Step Act, which allowed for the earlier release of some prisoners and reduced specific sentences.
The Trump administration also saw record-low unemployment rates for several demographic groups, including African Americans, Hispanic Americans and women. On the foreign policy front, Trump brokered normalization deals between Israel and several Arab states.
Trump signed the Tax Cuts and Jobs Act, which significantly reduced corporate tax rates and provided temporary benefits for individuals. He successfully appointed three Supreme Court justices and 226 federal judges, reshaping the judiciary for years to come.
Economically, the stock market reached record highs during his tenure, with the Dow Jones Industrial Average closing above 30,000 for the first time. Despite my personal criticisms, these achievements represent tangible policy results of the Trump presidency.
So let’s hold him accountable to his promises and ensure that Bitcoin will perform more like the Dow Jones than the border wall over the next four years.
Beyond Politics: The True Potential of Blockchain and Bitcoin
I’ll step back from the American political spotlight for a moment and focus on the fundamental principles that make blockchain and Bitcoin revolutionary. I believe in the decentralization of finance for reasons beyond the selfish “numbers go up” motivation.
No existing political party advocates the true potential of blockchain.
Still, I envision a society where decentralized governance replaces bloated bureaucracies, allowing for direct participation and ownership through DAO-like systems. Such a model could facilitate social services such as healthcare, education, food, housing and internet access without the inefficiencies that often accompany large governments. Furthermore, collective ownership via blockchain removes the risks of authoritarian control.
Through blockchain-based systems, the free market and private property can coexist alongside the more left-wing ideals of free healthcare and a universal basic income, if we strip away the bloat of traditional finance and bureaucracy.
I believe blockchain is the path to self-sovereign freedom, free from the fiat shackles of today’s tradFi world. It can do much more than just make early investors rich.
As an energy-backed hard money asset, Bitcoin offers a path to responsible fiscal policy and economic stability – in stark contrast to fiat currency’s dependence on government resolve and sensitivity to inflation.
A pro-crypto Republican president enters the White House, but Bitcoin (and crypto in general) is not Republican, Democrat, Labor, Conservative or Green.
Bitcoin is freedom money, and freedom means that people are free to reach their potential.
All people.
The future
While Trump’s pro-crypto stance will likely yield short-term benefits, the crypto community must maintain its independence from any political figure.
Our true strength lies in the decentralized nature of crypto and its ability to empower individuals, regardless of who holds office. Our focus must remain on building resilient systems that promote fairness, transparency and self-sovereignty.
For now, I’m cautiously optimistic about what the Trump presidency could mean for crypto. His support can bring about positive change, but we must remain vigilant and committed to the core ideals that define this movement.
Bitcoin cannot be yet another campaign promise left unfulfilled by politicians.
This is a monumental first step for crypto and Bitcoin – but words are just that. From January 20, we need action, and the industry must accept nothing less than what was promised.
Ultimately, by focusing on the transformative potential of blockchain technology in general, we can strive for a more decentralized and just society that transcends the ebb and flow of political tides.