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Bitcoin and most crypto assets have been printing higher highs since the failed assassination attempt on Donald Trump. Looking to take over from Joseph Biden, Trump is pro-crypto and even graced the Bitcoin Conference in Nashville, where he delivered a speech.
BTC Inching Higher On Donald Trump’s Endorsement
With rising odds that Trump will clinch the presidency in November, Bitcoin prices continue to tick higher. Looking at the chart, the coin is approaching $70,000 and is less than 10% from all-time highs. Technically, a close above the $72,000 resistance level could see the world’s most valuable coin edge higher, registering fresh all-time highs.
Various factors could propel the world’s most valuable coin in the coming months, especially if Trump takes over. While the former president has promised to support crypto innovation, the very idea of his administration considering Bitcoin as a strategic asset is another driver. However, not everyone supports this proposition.
Joe Valenzuela, a Dash executive, thinks the United States government backing BTC and qualifying it as a strategic asset is a bad idea. If this decision is actualized, it will cause a major shift.
This disruption could have far-reaching implications on Bitcoin’s core objective. Since its launch in early 2009, the idea of Bitcoin has been to be a peer-to-peer (P2P) electronic money and an alternative to fiat currencies such as the USD and Euro.
Bitcoin As A Strategic Asset Is Bad: Here’s Why
In the post, the Dash executive argued that positioning BTC as one of the United States’ strategic assets at the same level as gold would be bad for smallholders and ordinary retail enthusiasts.
With Bitcoin as a strategic asset, nothing will prevent the government from printing more cash to buy the scarce commodity. In this case, the political class and the government would be enriching themselves and their allies at the expense of the masses.
Valenzuela added that if Bitcoin had scaled and found global adoption as a legal tender, not just in El Salvador as is currently the case, money printing by top governments would have had a minimal impact. This is because ordinary users would quickly opt for BTC as a perfect shield against inflation instead of holding their wealth in fiat.
As things stand, Bitcoin is at risk of being adopted and hoarded by the establishment, meaning retailers and users are at risk of being cut off and failing to find a tool to hedge against inflation.
Feature image from Canva, chart from TradingView
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