Bitcoin And President Trump

Syed Zawar Shah

For a president-elect with a penchant for controversy, perhaps nothing has dominated Donald Trump’s path to the White House quite like cryptocurrency, which has led to record Bitcoin prices and has sparked heated debates. Even forming a strategic Bitcoin reserve has not been ruled out. When quizzed by CNBC at the New York Stock Exchange about that very plan, Trump said, “Yeah. I think so. We’re going to do something great with crypto.”

Since his electoral victory, Bitcoin has broken past $100,000 for the first time, and Trump is staffing a team of pro-crypto advisors. Analysts believe that his support for a U.S. Treasury-held Bitcoin reserve will push prices up by another 50%. Advocates see this as an opportunity for the United States to take the lead in a transformative technology; critics warn it will exacerbate wealth inequality.

Trump’s views on cryptocurrency are dramatically different. What was once dismissive of Bitcoin as a “scam” against the dollar is now a position where he was the first major party nominee in history to accept Bitcoin and crypto donations during his campaign. His new interest in digital currencies coincides with his family launching their own cryptocurrency.

Speaking at a Bitcoin conference in November, Trump declared his vision for the U.S. to become “the crypto capital of the planet and the Bitcoin superpower of the world.” He has also appointed billionaire David Sacks, a long-time Bitcoin advocate and PayPal Mafia member, as his “AI and crypto czar.”

Sacks, an early Bitcoin proponent, said that the industry needs clear regulations. He added that a Trump administration would provide the legal framework for spurring innovation in the U.S.

The concept of a Bitcoin reserve is not new. A bill introduced earlier this year by Senator Cynthia Lummis, a Trump ally, would transfer all Bitcoin held by federal agencies to a strategic Bitcoin reserve. The Treasury would also be authorized to purchase up to one million bitcoins over five years, holding them for at least two decades.

Such a reserve would help cement U.S. leadership in the cryptocurrency space and send Bitcoin prices flying, argue proponents of cryptocurrency. Analyst Ronnie Moas predicts the announcement of a reserve could send Bitcoin prices up by 25–50% overnight as investors race to get ahead of government purchases.

Trump’s pivot toward cryptocurrency, coupled with his administration’s plans, will greatly reshape the financial landscape of the United States to be positioned at the helm of the crypto revolution.