After the election of Donald Trump in early November, Bitcoin prices have skyrocketed to the highest numbers the world has seen. The price of a Bitcoin went from 63k before the election of Trump to 100k after the election, a 58% increase.
What exactly is Bitcoin? Bitcoin is a crypto currency not owned or controlled by any government or institution. It was the product of the frustration that overtook Americans during the 2008 financial crisis. Fed up with the inconsistency of the US dollar, a person under the pseudonymous name Satoshi Nakamoto created Bitcoin in hopes of providing a more fair form of currency that could not be taken advantage of or manipulated by banks and the federal government. Due to this new initiative, Americans were attracted to Bitcoins’ security. Unlike the US dollar, Bitcoin has a fixed supply. Today, Bitcoin is used as a store of value for people to set aside their wealth and to protect themselves against inflation.
Americans have gained a heightened interest in Bitcoin after the election, but why is this so? Trump happens to be the first president to trust and endorse the currency. In late July, Trump attended the annual Bitcoin conference in Nashville, Tennessee. According to Bitcoin Magazine who has posted Trump’s full speech at the conference, Trump addressed his six main goals for Bitcoin, rallying the support of the crypto community, thus allowing him to gain the trust of the investors.
Trump’s first goal was to end the crackdown on crypto. The United States government is notorious for being against Bitcoin because many fear that it competes with the US dollar, leading the government to avoid the coin altogether. Trump detailed that on the first day of his presidency, he would fire the Securities Exchange Commission Chair, Gary Gensler, due to his stance against American companies affiliated with Bitcoin.
Trump’s second and third goal included establishing a bitcoin advisory council and building a Bitcoin stockpile for the US. The advisory council would closely monitor the currency.
The United States has shied away Bitcoin for years, so Trump’s fourth goal was to make America the “crypto capital of the planet and the bitcoin superpower of the world.” According to Trump, it is only a matter of time before other countries begin to switch to using cryptocurrency, so he wants America to be one of the first countries to make the switch in order to get a head start.
Trump’s fifth and sixth goals for Bitcoin in America included respecting personal privacy when it comes down to personal finance. His fifth goal is to protect and encourage the use of self custody wallets, meaning Bitcoin can be held in personal wallets instead of having to be held by a bank. The sixth goal included the prevention of a CBDC, or a central bank digital currency. A CBDC eliminates the use of paper money, creating a digital version of the dollar. The creation of a CBDC allows the government to have complete supervision and control over all financial transactions, eliminating privacy.
The Bitcoin Conference was a pivotal moment in Bitcoin history because it cleared up any previous skepticism that investors may have. In Trump’s last presidency, he was against cryptocurrency because he felt that it threatened the US dollar, but his views have changed in 2024. Trump endorsing bitcoin gives Bitcoin investors clarity that the future of Bitcoin is bright. Instead of the US government trying to suppress the currency, according to Trump’s goals, the country will be more friendly to Bitcoin, allowing many new Americans to invest in the currency because it is supported by the future president.
I interviewed Ted Santos who has followed the Bitcoin journey since 2014. When asked about his trust in Trump to follow through on his goals, he stated, “I don’t fully trust Trump, but I think he will follow through with his promises because he has surrounded himself with a lot of crypto supporters such as Elon Musk… even his vice president, JD Vance has invested in Bitcoin.”
Concerning the future of Bitcoin, Santos thinks that, “people are going to use Bitcoin as the best store of value that the world has ever seen.” Additionally, it is almost certain that once the US moves to buy Bitcoin as a reserve asset, other countries will follow too. Currently, Trump is expected to pass the Bitcoin Act of 2024, stating that the US treasury buys 200k Bitcoin every year. The future of Bitcoin in America is optimistic and since the election of Trump, the coin has only grown more each day.
