After months of drama and division, America is finally heading to the polls.
And voters have a simple but significant choice to make: Donald Trump or Kamala Harris.
Both candidates have been racing around the country to put forward their vision for the U.S. — with polls showing that the final result is on a knife-edge.
On paper, it’s clear to see that Trump has done the most to win round crypto supporters. He’s made no shortage of lofty promises — from vowing to fire SEC chair Gary Gensler, to calling for the Treasury to follow El Salvador’s lead by creating a Bitcoin reserve.
But that shouldn’t be enough to command your vote.
Just like nervous Bitcoin investors are urged to “zoom out” when fretting over short-term price movements, voters must do the same when it comes to casting their ballots.
Backing Trump over his pro-crypto stance alone is reckless — a short-sighted move that’s based solely on the hope that BTC would rise substantially with him in power.
And while hodlers may rub their hands gleefully if their portfolios surge, there would be no shortage of devastating ramifications elsewhere.
Financial experts have repeatedly warned that Trump’s policies could be nothing short of disastrous for the U.S. economy. Tariffs on imported goods would spark tit-for-tat trade wars with other countries, cause inflation to spike once again, and prompt domestic producers to increase their own prices. Everyday consumers would feel the pinch.
This unnecessary pressure may mean the Federal Reserve has little choice but to keep interest rates at an elevated level — harming Bitcoin in the long run.
The world’s biggest cryptocurrency thrives when the cost of borrowing is low, not least because it prompts investors to seek returns from riskier assets. There’s every chance that a Trump presidency could hinder BTC far more than it helps.
And in a year where we’ve seen some of Wall Street’s biggest financial institutions flock to Bitcoin, fueled by the launch of exchange-traded funds based on its spot price, this election is a moment of reckoning.
Satoshi Nakamoto’s whitepaper set out a vision of BTC allowing electronic cash to be transferred from peer to peer without middlemen — offering an alternative to banks and centralized control. The genesis block in 2009 spoke of anger at how the British government’s finance minister had bailed out banks. Now, we’re in a situation where Bitcoin could be warmly embraced by the White House, undermining why it was created in the first place.
But worst of all, there’s very little sign that Trump actually cares about Bitcoin, why it exists, and this blockchain’s fundamental values.
From dining with crypto entrepreneurs in Mar-a-Lago, to wooing conference attendees at Bitcoin 2024 in Nashville, it’s clear to see what really motivates this former president: money.
Every campaign promise made about BTC has led to millions of dollars in the bank, and breathless endorsements from early adopters looking to protect their wealth from low taxes. Trump’s pursuit of this industry isn’t driven by a belief that this is the future of money, it’s been nothing more than a cynical ploy to drum up donations.
With reports suggesting that Trump is up to $1.8 billion in debt — a figure that’s continually rising — this is a politician that has flocked to the deepest pockets he could find, and told them what they want to hear, in an effort to save his own skin.
If you actually go back and look at the crypto policies he’s proposed, you begin to realize that they’re incredibly light on substance. Would it really be possible for all remaining Bitcoin to be mined in the U.S. of A? For the Treasury to treat crypto seized from criminals as a nest egg for the future? For Trump’s administration to defy legal precedent by showing Gensler the door? And more importantly, is this actually what the American crypto industry needs to succeed?
Trump is known for flip-flopping on issues — including crypto — and it’s easy to forget that he described Bitcoin as a “scam against the dollar” just a few short years ago. And if I was a betting man, I’d wager you this: the 78-year-old wouldn’t answer a single question correctly about how BTC works. From its total supply to its current price, from the year it was founded to the mining process, this isn’t someone who’s literate about crypto. His campaign’s showed that.
And while the Republican nominee has certainly dabbled in digital assets, there’s no sign he’s actually interested in Bitcoin specifically. Figures from Arkham Intelligence show he doesn’t own a single sat. Instead, the vast majority of his holdings are in ETH and Wrapped ETH — as well as a flurry of memecoins including TRUMP and MAGA. Bitcoiners often talk about how important it is to have skin in the game. Block explorers confirm he doesn’t.
If there’s one area of crypto that Trump relates to, it’s altcoins. He’s one of the few businessmen who managed to launch a casino that went bankrupt — and the wild speculation among tokens with a smaller market capitalization is right up his alley. That’s why he’s gravitated toward releasing NFTs that depict him as a superhero (many of which have now tumbled in value) and throwing his name behind a DeFi platform that’s offered word salad and barely little else.
The U.S. election will have a defining impact on some of the biggest issues the world is facing right now — from climate change to wars in Ukraine and the Middle East. National news outlets can tell you more about that, and that’s why this piece comes from a crypto-specific angle.
Kamala Harris and the Democrats are by no means perfect when it comes to digital assets — and they have barely mentioned the issue on the campaign trail. The Biden administration’s legacy is far from flattering either, and many firms will argue that the past four years have been hugely damaging for the crypto industry.
But despite appearances, Trump is unlikely to be the knight in shining armor that investors are hoping for — and “Trumponomics” could undo all of the huge price gains BTC has made in recent months.
American voters should back who they want, and at this stage in proceedings, have probably made up their mind. But crypto enthusiasts who back him should prepare for disappointment.
Trump’s argued that crypto will be “living in hell” if he loses. There’s been not enough thought about how hellish it could be if he wins.
Disclaimer: The opinions in this article are the writer’s own and do not necessarily represent the views of Cryptonews.com. This article is meant to provide a broad perspective on its topic and should not be taken as professional advice.
The post Opinion: Backing Trump Because He’s Pro-Crypto is Reckless appeared first on Cryptonews.
