bitcoin and most crypto assets have been recording ever higher highs since the failed assassination attempt on Donald Trump. Trump, who is seeking to replace Joseph Biden, is a supporter of cryptocurrencies and even graced the bitcoin Conference in Nashville, where he gave a speech.
btc advances slowly after Donald Trump's endorsement
With the increasing likelihood of Trump winning the presidency in November, bitcoin prices continue to rise. Looking at the chart, the coin is approaching $70,000 and is less than 10% away from its all-time highs. Technically, a close above the $72,000 resistance level could see the world’s most valuable coin surge higher and record new all-time highs.
Several factors could boost the world's most valuable currency in the coming months, especially if Trump takes power. While the former president has promised to support cryptocurrency innovation, the very idea of his administration considering bitcoin as a strategic asset is another driving factor. However, not everyone supports this proposal.
Joe Valenzuela, a Dash executive, x.com/TheDesertLynx/status/1817649723140092292″ target=”_blank” rel=”noopener nofollow”>think The fact that the US government supports btc and calls it a strategic asset is a bad idea. If this decision is made, it will cause a major change.
This alteration could have far-reaching consequences for bitcoin's main purpose. Since its launch in early 2009, bitcoin's idea has been to be peer-to-peer (P2P) electronic money and an alternative to fiat currencies such as the US dollar and the 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 on par with gold would be bad for small holders and ordinary retail enthusiasts.
With bitcoin as a strategic asset, nothing will stop the government from printing more money to buy the scarce commodity. In this case, the political class and the government would enrich themselves and their allies at the expense of the masses.
Valenzuela added that if bitcoin had scaled and found global adoption as legal tender, not just in El Salvador as is currently the case, money printing by major governments would have had minimal impact. This is because ordinary users would quickly opt for btc as a perfect shield against inflation instead of keeping their wealth in fiat currency.
As things stand, bitcoin is at risk of being adopted and cornered by the establishment, meaning retailers and users risk being isolated and unable to find a tool to protect themselves against inflation.
Featured image from Canva, chart from TradingView
