Bitcoin and other cryptocurrencies have been experiencing an upward trend, particularly after the recent events involving Donald Trump. Trump, who is known to be supportive of crypto, has shown interest by attending the Bitcoin Conference in Nashville and expressing his views.
Bitcoin Sees Price Surge Due to Trump’s Influence
Speculation around Trump potentially winning the presidency has led to a surge in Bitcoin prices. The cryptocurrency is approaching $70,000 and is close to reaching its all-time high. A breakout above the $72,000 resistance level could propel Bitcoin to new record levels.
If Trump assumes power, there are several potential factors that could drive Bitcoin’s value higher, including his support for crypto innovation and the notion of Bitcoin being recognized as a strategic asset by his administration. However, not everyone agrees with this perspective.
According to Joe Valenzuela, an executive at Dash, endorsing Bitcoin as a strategic asset for the US government could have negative consequences. Such a move could disrupt Bitcoin’s fundamental purpose of being a decentralized electronic currency and an alternative to traditional currencies.
Challenges of Bitcoin as a Strategic Asset
Valenzuela argues that categorizing Bitcoin on par with assets like gold would disadvantage small investors and retail enthusiasts. Designating Bitcoin as a strategic asset could lead to the government inflating its value by printing more money to acquire the limited resource, thereby benefiting only a select few.
He further explains that if Bitcoin had reached global acceptance as a legal tender, similar to its current status in El Salvador, the impact of government money printing would be minimized. In such a scenario, individuals would opt for Bitcoin to shield themselves from inflation, rather than holding onto fiat currencies.
There is a risk that institutional entities could dominate Bitcoin adoption, leaving regular users without a reliable hedge against inflation. The possibility of Bitcoin being monopolized by established organizations poses a threat to ordinary individuals seeking financial protection.
