One of the two contenders of the US Presidential race Donald J Trump is all set for the big day. With just over a month left, the republic nominee has been very entertaining throughout his campaign. While U.S.A. waits for the decisive day, let’s look into what Trump’s presidency would mean to cryptocurrency enthusiasts:
Trump’s Economic policies:
At a 2016 Republican convention, Trump declared that he was going to free U.S. from bad trade agreements. He confirmed his anti-globalism position when he said:
“Americanism, not globalism will be our credo.”
He added that U.S. might pull back from NATO commitments which means U.S. would be walking away from the world. The effects of this could be similar to U.K. leaving the European Union. ‘Brexit’ had seen Bitcoin Prices soaring up with investors moving funds into the cryptocurrency. A similar event on part of U.S. might contribute to high prices and mainstream adoption.
A Trump presidency would put in place regulatory reforms on all industries. These reforms aim to remove “least critical regulations”. For Fintech industries, these financial rules were instituted one or two centuries ago. This implies that the regulatory environment may, finally, become far more welcoming for Bitcoin and Blockchain Technology. This may allow U.S. to finally catch up with European countries in terms of Fintech regulations.
While individually few policies might seem positive, on a whole, Trumps economic policies might turn out to be fatal for the economy.
Trump against immigration:
Stopping immigration has been the central theme of Trump’s campaign. He pledged to check immigration and remittances which followed his controversial speech about building a wall along the US-Mexico border. If these measures come into play, then people will start looking for alternative modes of remittance, which is Bitcoin.
If Trump really stands firm on his policies against immigration and remittance, Bitcoin transfers across borders will experience an uptick. This would lead to the development of a healthy Bitcoin ecosystem in U.S. and Mexico.
Trump’s Policies on China and the East:
Trump has vocally proclaimed many times during his campaign that the trade agreements with China will be renegotiated. He persuasively argues that we are currently in a trade war with the global economy resembling a zero-sum game. Nations are outright cheating by intentionally devaluing their currency, making exports cheaper at the expense of others. His economic plan aims to implement a non-zero sum system where trade benefits all. This is detrimental to the interests of Chinese as that would decrease their hold over their exports.
How any movement in Yuan has affected the Bitcoin prices is evident from recent devaluation policies by China. Implementation of the said policy by Trump would put China in a position of discomfort. They would initiate monetary strategies that would make Yuan sufficiently volatile. This would certainly see investments flowing into the Bitcoin market and the ecosystem would never be at equilibrium.
Hence Trump’s policies have an indirect bearing over Bitcoin and would push the currency in a positive light.