It is no surprise that Bitcoin has had a rather turbulent year. Covid19-induced lockdowns caused a massive decrease in the coin’s value within the first quarter of 2020, only to later recover in the news of the extreme bailout measures and excessive money printing by the US government.
A market as young as that of Bitcoin is easily influenced by global events, and one of the biggest and most awaited ones has just been concluded. The very controversial US elections.
In this article, we briefly discuss how the USA and the election process has affected the cryptocurrency markets, and why now more than ever before, people choose to buy Bitcoin. Let’s get started.
The two presidential candidates and their view on digital currency
In February 2020, President Trump announced the projected budget allocation for 2021, a report which also included the crypto industry. According to the report, the president wished to allocate a large number of funds towards increased regulation of the industry, focusing more on the currency’s use for illicit activities. Apart from that, the president has publicly expressed his dislike for Bitcoin in a tweet he made earlier this year.
So what about president-elect Joe Biden? Bitcoin maximalists feel that a democratic rule is best for the future of the industry, and point out the reasons in multiple blog posts all over the web. Additionally, the appointment of Janet Yellen as treasury secretary is also celebrated by the community, as the former fed chair has never missed an opportunity to create bailout packages by printing more money.
Overall, one could say that the likely shift in rule from conservative to democratic parties will have a positive effect on the mid to long-term value and acceptance of Bitcoin. The Bitcoin price today may only be a fraction of the coin’s potential over the next few years.
Rigged election claims and the fall of the US financial system
This was the first time we ever so an election with so much backlash from the public. The healthy opposition between the two parties was replaced by actual lawsuits claiming the elections were rigged to pass over to the democratic party. Do we believe the allegations? We can’t be certain but the issue exposed the lack of organization and duality experienced in our governmental system.
This, in turn, further exposes the challenging issues of our current financial system, which keep piling up as we are entering into another full-blown lockdown with millions of unemployed citizens. Many are worried that this is only the start, which is why they are looking for a way out – a method to better protect their valuables.
Why Bitcoin is the answer
In this article, we aim to be as objective as we possibly can. However, it can easily be seen that Bitcoin is, by design, a lot more democratic, giving power back to the people – something that is missing in today’s society. By maintaining full control over their own funds, individuals are fully responsible for the way they store, use and protect their money, without having to trust third parties they do not wish to be associated with.
This realization has changed the attitude of many individuals, as well as institutions, who are now proponents of the popular cryptocurrency. By investing a large part of their cash reserves and savings into the network, they create a defense mechanism against even worse economic circumstances that may arise if the governments around the world do not manage to solve the pandemic-related lockdown issue. And given the fact that nearly 20% of the population on a global scale wishes not to be vaccinated, we may be here for quite a while longer.
The US elections were one of the biggest events of last year, and certainly had an effect on Bitcoin. While for the most part, we saw the popular cryptocurrency appreciate at price due to the uncertainty and fraud claims linked with the process, the air doesn’t seem to be cleared yet. There is still an active effort to understand whether or not the elections were actually a victim of fraud, so we will need to be patient as events continue to unfold.
For now, all you can do is continue your research and use this information not as financial advice, but as fuel to help you perform more research on your own accord.
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