Election 2020: What that means for Bitcoin

In case you’ve been living under a rock, you know today is Election Day in the US. There’s a lot of things up in the air, from immigration to foreign policy. Everyone is waiting with baited breath. But what about Bitcoin? Where will Bitcoin stand depending on who wins? Will Bitcoin see a push of mass adoption, allowing more to get paid in Bitcoin?

Now, it can be hard to predict these things, although others, in addition to myself, are trying. Especially in the past month, as the race nears its close, there has been a flurry of analyses to try to figure out just where Bitcoin stands. Some claim, it would be good no matter who wins. Others that it will do well under Trump. But all agree, Bitcoin is poised for a shake up, whether good or bad.

Over the past month Bitcoin has seen a huge price increase, and the past 7 days has been some of the best Bitcoin has seen in a long time. Bitcoin, after so many years of being pegged to the stock market, has finally broken free, for one. As the stock market tumbled, Bitcoin shot up. This means, Bitcoin is uniquely positioned to set its own path. Which path will it take?

Bitcoin users should start hoping Trump loses. Trump has repeatedly gone after Bitcoin throughout his Presidency. He has show time and time again, he doesn’t like it. Give him another four years, and Bitcoin is in trouble.

Trump told his Secretary of Treasury, Steve Mnuchin, to, and I quote “go after Bitcoin.” Mnuchin has released plans to stifle Bitcoin’s growth and to punish those who use it. Trump has repeatedly used language to legitimize Bitcoin. Trump has even gone as far as to claim that Bitcoin can “facilitate illegal behavior.”

Anyone with half a brain knows what Trump writes is asinine. Yes, Bitcoin has a dark side, but as my analysis showed, that dark side is far lighter than it is made out to be. Without a doubt, fiat currency is used far more for criminal activities. For someone who claims to make a lot of money, Trump does not know where the real money makers are.

Trump is wrong.

About the only reason a Bitcoin user should support Trump is if they believe the US will collapse, but Bitcoin will go up as a way to escape failing stock markets and banks. With the recent unpegging of Bitcoin from the stock markets there could be that chance. But it takes a very selfish and short sighted person to wish for that.

Trump is bad for Bitcoin.

And some crypto groups seem to realize his harm, even if they are trying to gain money in the process. A group hacked Trump’s campaign page, and placed a message calling Trump as a danger to America and asked for donations in Monero. Now obviously, these folks are scammers and should be caught and tried in court, but it is interesting to see who they target.

Thankfully for Bitcoin, Trump doesn’t have a good chance of winning. 538, a political poling/prediction outfit, has Trump at only a 10% chance of winning the election. This is good for Bitcoin.

Biden is by no means perfect for Bitcoin. He is still from an old guard, a guard that doesn’t trust things like Bitcoin. Biden has said he does not own any Bitcoin, and he likely never will. That doesn’t mean he can’t help Bitcoin. Just the fact that he isn’t Trump brings a good argument.

But it doesn’t end there. While Biden himself doesn’t seem to have an opinion on cryptocurrency, many members of his team does. Multiple higher ups in Kamala Harris’s circle are proponents or users of cryptocurrency. For example, Ryan Montoya is a big part of Harris’s team. He’s former CTO of the Sacremento Kings and oversaw a lot of Bitcoin and Blockchain adoption in the team:

Yang in a Biden admin would be “yuge” for Bitcoin.

Most of all, Andrew Yang, a former 2020 Democratic Presidential hopeful, is on Biden’s campaign team. Yang, and his Yang Gang, are huge proponents of Bitcoin. Yang has called for lots of crypto related advances, including a voting system based on the Blockchain. Its possible Yang will end up in Biden’s administration. If he does, Bitcoin is set for a new rise.

Andrew Yang is a huge Bitcoin/Blockchain proponent.

That’s not to say it will all be flowers and sunshine. This won’t happen overnight, and without a doubt there will be members on Biden’s team who view Bitcoin with suspicion. And there will be without a doubt more regulation. Many will view this as a negative, but increased regulation, and clarification to IRS tax rules, could actually see a more widespread adoption of Bitcoin. Some would argue this goes against Bitcoin’s founding principles however.

Regardless, a Biden victory, at its core, brings stability. He brings a true fight against Covid, he brings a calmer international realm, and a stronger economy. All this is good for Bitcoin. He will also fight to break up Wall Street and big banks. The very enemy Bitcoin seeks to destroy. We have a common enemy, a Biden administration is well placed to increase Bitcoin’s legitimacy.

In the end, it comes down to what you want. Trump will bring problems, chaos, and pain. This could be good for Bitcoin. As the US burns, Bitcoin could skyrocket. But that’s playing with fire. Biden ensures you’ll be alive and healthy to enjoy your Bitcoin gains.

This is a companion discussion topic for the original entry at https://insights.blockonomics.co/election-2020-what-that-means-for-bitcoin/