Trump's Historical Stance on Bitcoin

Back in 2019, the world knew Donald Trump as a hater of Cryptocurrency. In a Twitter post (now known as X), he clearly explained why he did not believe it would create value for the economy and society.

Bitcoin Conference 2024's New Stand

However, on 27 July 2024, at a Bitcoin Conference in Nashville, the running presidential candidate changed his mind and made a very strong statement supporting Bitcoin.

Although most of his speech remained dramatic and inspiring, he did not disclose why he wanted America to invest in and retain at least 50% of Bitcoins and take a lead in cryptocurrency. Presently eyeing China as his cryptocurrency rival, the president half-jokingly told the audience that they did not have to learn Chinese just to move to China for a better economy if they supported Bitcoin.

Amidst the applause and validation from supporters, Donald Trump left the Bitcoin Conference without further clarifying how he would achieve his promise of securing half of the bitcoins on the market or how he would use them to further strengthen the USD. Many analysts have written articles with theories on how Bitcoin would support the wildly fluctuating USD to curb its inflation rates. However, many tend to overlook just how wildly fluctuating Bitcoin is as well.

One thing to note here is that there was a strong emphasis on Bitcoin and no mention of other cryptocurrencies or NFTs. Ignoring the fact that it was spoken at a Bitcoin Conference, why did Donald Trump change his mind?

Some crypto enthusiasts like David Hoffman, the co-host of a crypto podcast Bankless, remained sceptical of Donald Trump's support. Until further measures, plans, or actions are in place, it would be difficult to convince some people that Donald Trump is serious about integrating cryptocurrency into America's economy.

What changed from 2019 to 2024?

Close followers of Donald Trump's news would learn how he made some money from NFTs back in 2022 from the sale of his Mugshot NFTs. His wife, Melania Trump, is said to be even more active in this endeavour by selling NFTs. The success of Melania and Trump's experience with cryptocurrencies might have changed their perspectives on it in the recent presidential election campaign.

However, none of these new business ventures with cryptocurrencies could compare to other crypto investors who had a headstart while he was condemning them in 2019. Changpeng Zhao, the former CEO and founder of Binance, has a net worth of about $33 billion, while Donald Trump has a net worth of about $7.5 billion despite his humongous real estate empire.

That's over 3 times more than what Donald Trump has, and Changpeng Zhao is only 47 years old, while Donald Trump is 78. Any smart businessman would know how to ride the tide when it appears, and Donald Trump is one of the best entrepreneurs America has seen.

Why Bitcoin?

At the beginning of blockchain technology, Bitcoin existed. However, it was not understood very well. TLDR, blockchain is a technology for encrypting data into a spreadsheet that uses multiple computers all over the world to validate that. So far, nobody has managed to hack blockchain encryption, making this technology extremely valuable for industries such as banks, hospitals and airport security.

Back to Bitcoin. This is a type of cryptocurrency that uses the older model of blockchain technology and has a hard limit of 21 million Bitcoins that can be mined. Once that number is reached, no new bitcoins will be made in circulation. At the same time, the more bitcoins are mined, the harder it is to earn a new one. This creates a scarcity of Bitcoin that is different from Ethereum, which has no upper limit. Unlike Bitcoin, which requires extensive effort in "mining" the data, Ethereum only needs to "validate" the data and takes less processing power. This allows Ethereum to continuously create new blockchain encryptions, while Bitcoin has only a fixed set of encryptions that will be more sophisticated than other blockchain algorithms.

Presently, the Bitcoin blockchain game is reaching its end. The moment the remaining coins are mined, no new coins will appear on the market and the number changes daily. When all 21 million Bitcoins are mined, all that is left is for them to be traded on the market. Unlike money, which is constantly fluctuating against political, social and natural disasters, Bitcoin is fixed.

All traders know how volatile the forex market can be. However, what if a stable currency that would never change against time and resources were introduced as a guide? Similar to how many countries and central banks buy gold to secure their financial value against global inflation, Bitcoin could be used in a similar manner. It's the main reason why Donald Trump believes cryptocurrency, in particular Bitcoin, is the key to a greater America. Should America truly manage to keep half of all Bitcoins in its economy, it is very possible for them to regain their former glory as a forex safe haven.

Future Predictions

Until the presidential election in 2024 ends, nobody knows if Donald Trump's grand plan will work or if he will keep his promise and rebuild America during his next term. However, it is certain to say that Bitcoin and other forms of cryptocurrencies have unlimited potential that not many people are able to harness yet. It might still take countries and people a little longer to get used to the concept of blockchain money instead of fiat money. In the event that Donald Trump wins the 2024 election and lays down policies to pave the way for cryptocurrencies, there is a very high possibility that Bitcoin will turn into a global ultimate safe haven asset amidst the economic and political turmoil.