Is Trump’s USA Facing Bitcoin Domination?

After Trump’s election as president, Bitcoin experienced a rapid increase in value. Fans of the cryptocurrency are enthusiastic, but experts urge caution: without clear action, a crash could be imminent.

Washington – Since Donald Trump’s victory in the US presidential election the Bitcoin price has risen sharply and could The $1 million mark will soon die to reach. The republican had repeatedly emphasized during the election campaign that he would strengthen the cryptocurrency if he became president. The price fluctuations that have adjusted with his chances at the presidencyunderline that crypto fans have high expectations of Trump’s crypto policy. However, if Trump doesn’t jump on the bandwagon, the crypto market could quickly fall again, according to experts.

“Big plus for cryptocurrencies” – How Trump’s change of heart is driving Bitcoin higher

The Republican announced Trump’s change of heart regarding Bitcoin during the election campaign at the Bitcoin conference in Nashville. There he spoke of making the USA the “crypto capital of the planet” and elevating Bitcoin to the “superpower of the world”. Trump saw the currency in a different light during his last candidacy for US President, he wrote on the platform at the time Twitter (nun X): “I am not a fan of Bitcoin and other cryptocurrencies that are not money and whose value is very volatile and based on thin air.”

Bitcoin’s current peaks of over $98,600 suggest that Trump’s change of heart was well received, at least by investors. The trust is further supported by Trump’s collaboration with billionaire and crypto advocate Elon Musk, which will form a government commissiondie um after his favorite cryptocurrency DOGE named hat. However, expectations of the Republican are high.

According to Rhys Bidder from the Qatar Center for Global Banking and Finance, many people around the world have been waiting for the recovery of this key market. Trump’s victory is therefore “a big plus for cryptocurrencies”. Additionally, many expect Trump to replace the SEC chairman with a candidate who is positive about crypto, as he writes on the King’s College London website. The “SEC” refers to the US Securities and Exchange Commission, currently led by Gary Gensler and which is widely criticized by crypto fans for cracking down on innovation in the crypto world.

Trump’s visions to make the United States the “crypto capital.”

He also announced concrete plans at the conference in Nashville on how Trump, as president, wants to strengthen cryptocurrencies in the country. At the time, he particularly emphasized building a government Bitcoin reserve that would “retain 100 percent of all Bitcoins that the US government currently owns or acquires in the future.” As of October 2023, estimates put the state’s inventory at more than $5 billion, most of which was confiscated for criminal investigations.

Trump’s other visions include establishing a crypto advisory board in the White House and ensuring that the US Federal Reserve would not introduce its own digital currency. Crypto expert Adam Blumberg told the financial advisory platform Bank rate: “I think we will see stablecoin legislation that will lead to more people transacting on the blockchain.”

Trump also has the right platform for borrowing and lending cryptocurrencies and offering decentralized financial services: “World Liberty Financial” is his latest business model, which he will lead with his sons. However, industry insiders are already speaking out against the possibility of Trump becoming president Above all, they could promote their own interests for their company.

The vast majority is behind Trump – that could mean his vision globally

With the support of the Senate and House of Representatives, which has been consistently Republican in this presidential termTrump would at least have the opportunity to achieve many of his goals. “On the Republican side, no one is currently willing to oppose Trump, and they will propose and vote for the rules he wants,” explains Blumberg.

The cryptocurrency could give the US another major advantage: experts emphasize that Bitcoin, like gold reserves, can hedge against inflation and geopolitical risks. This is because the maximum amount of Bitcoin is capped at 21 million units. Nevertheless, the price remains extremely volatile and poses significant risks. However, if the USA succeeds in establishing itself as a “crypto superpower”, other countries could quickly come under pressure to follow suit.

But: “If he doesn’t keep this promise quickly, the euphoria could turn into disappointment, which could lead to one.” Crypto market volatility could lead,” explains Tim Kravchunovsky, founder and CEO of the decentralized telecommunications network Chirp, to the TIME. “We need to be prepared,” he adds, “because the reality is that crypto is not the most important issue on Trump’s current agenda.”