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Bitcoin and the New Tax Plan

On December 22, President Trump signed his tax reform plan into law. The Tax Cuts and Jobs Act passed Congress with a vote of 51 to 48 in the Senate and 224 to 201 in the House. It’s the most sweeping tax overhaul in 30 years. So, how will cryptocurrencies fare under the new plan? Pretty well, as it turns out. Here’s why Bitcoin investors stand to benefit from Trump tax reform.

About the Bill

The new tax plan:

  • Cuts personal income tax rates by several percentage points across tax brackets.
  • Nearly doubles the standard deduction for all filers.
  • Suspends the personal exemption (currently $4,150)
  • Ends the individual mandate of the Affordability Care Act, removing the tax penalty for uninsured individuals.
  • Massively cuts corporate tax rates from 35% to 21%
  • Suspends or limits most itemized deductions.

Some of these changes, like the tax cuts and doubling of the standard deduction, will expire in 2025. That’s enough time for the federal government to lose out on a big chunk of revenue. The tax plan is expected to raise the federal deficit by about $1.46 trillion, according to some estimates – and, if the cuts are not allowed to expire, that figure will rise.

With the national debt already hovering around 20 trillion, an increase may not seem like good news. For Bitcoin investors, however, a higher debt delivers some unexpected benefits.

Weaker Dollar, Stronger Bitcoin

The national debt impacts the value of the dollar. With a higher debt and an unbalanced budget, the U.S. Government must borrow at a higher interest rate to make payments. As interest rates increase, confidence drops – and so does the dollar’s value. Trump’s tax reform, with its massive debt increase, could make the dollar plunge over the next decade.

Investors once sought relief from a fluctuating dollar by investing in uncorrelated assets or assets like gold, which are inversely correlated with the dollar’s value. Today, there’s a new option: Bitcoin, which is uncorrelated with any asset and offers superior performance.

Chris Burniske of ARK Investment Management points out that Bitcoin constitutes a new asset class that’s uniquely able to stabilize a portfolio in an era of volatile returns. As the tax plan drives investors towards Bitcoin as a hedge against a falling dollar, the value of Bitcoin will rise.

The stock market may also see some pullback heading into 2019. Although cutting the corporate tax rate from 35% to 21% will boost stocks in the short term, slowing growth and the increasing weight of national debt on the GDP will eventually show up as negative returns in the market. In the long term, investors will seek uncorrelated assets that offer better value, with cryptocurrencies and Bitcoin as the leading options.

Extra Money Flows to Cryptocurrencies

There’s a flip side to the national debt increase that leads to a win-win scenario for Bitcoin. Even as Trump’s tax cuts drag down federal budgets, more money flows into the pockets of certain individuals, and – especially – to corporations. These entities won’t just have a greater incentive to invest in cryptocurrencies, they’ll have greater means to do so. Blockchain adoption could surge as a result.

Companies are already integrating blockchain into their operations. Fintech firm R3’s open-source Corda network is being used by over 60 companies, including Intel and Microsoft. Goldman Sachs and Google are investing in the technology. Public interest is high: when Long Island Iced Tea Corp. rebranded as Long Blockchain Corp. in December, its share price rose 289 percent. Lower corporate taxes let companies devote more funds to blockchain integration, bringing the technology into the mainstream.

Mainstream adoption means more opportunities for Bitcoin investors. The list of businesses that accept Bitcoin as payment is large and rapidly growing. CME’s recent launch of Bitcoin futures, along with Bitcoin ETFs and IRAs, make it possible to use Bitcoin in a variety of ways. Trump’s tax reform makes it possible for individuals to invest more in Bitcoin and use these investments more effectively.

Cryptocurrency Tax Fairness Act: The Next Step?

In September, Rep. Jared Polis and Rep. David Schweikert introduced the Cryptocurrency Tax Fairness Act as an amendment to the tax reform bill. The idea was to create a tax structure for cryptocurrencies, so that consumers could make purchases up to $600 without having to report them. Lifting reporting requirements would incentivize the use of cryptocurrencies on an everyday level.

The Act was not adopted into the tax bill, but remains an open issue. Some fear it would lead to over-regulation, while others see it as a necessary step towards legitimizing cryptocurrency. Either way, the Cryptocurrency Tax Fairness Act shows that legislature takes cryptocurrency seriously and is ready to push for a workable model. We can expect to see more discussion and better solutions over the next few years.


In 2017, Bitcoin prices soared and blockchain adoption exploded across industries. Trump’s tax reform sets an even better stage. Rising debt will increase Bitcoin’s value as investors move away from the dollar to a safer, uncorrelated asset. Lower corporate and individual taxes will lead to increased spending power and greater blockchain adoption. The Cryptocurrency Tax Act and similar bills will improve public awareness. This decade should be exciting for Bitcoin, with plenty of new opportunities for investors.

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Trump Tax Plan and Bitcoin

How Trump’s Tax Plan Could Boost the Price of Bitcoin

On September 27, the Trump administration released its new tax reform plan that would reduce income tax rates for both individuals and corporations. The Unified Tax Reform Framework aims to reduce the tax burden on American businesses and families and, thereby, boost economic growth by enabling businesses to create more jobs and by giving individuals more personal spending power.

The key points of the proposed tax reform are as follows:

  • Income tax rates would be reduced as follows:
    The highest tax bracket would be taxed at 35 percent instead of 39.6 percent. The middle tax bracket would be taxed at 25 percent instead of 28 percent and the lowest tax bracket would be taxed at 12 percent instead of 15 percent.
  • The maximum corporate tax rate would be reduced from 35 percent to 20 percent, giving a massive tax relief to U.S. corporations while the corporate tax rate on small businesses and pass-through businesses, where profits are passed through to partners and shareholders, who then report them on their individual returns, will be reduced from 39.6 percent to 25 percent.
  • The child tax credit will be increased to $1,500 and a $500 non-child dependent credit will be enacted.  
  • The reform also wants to double the standard reduction, eliminate personal exemptions, and eliminate the alternative minimum tax.
  • A one-time repatriation of overseas corporate profits for businesses was also proposed.

Since its publication, President Trump’s proposed tax reform has caused heated discussions among lawmakers, business owners, and Wall Street and the potential benefits and drawbacks of the reform are still being analyzed.

However, the potential effect that the new tax reform will have on the price of bitcoin is something that the media has not yet touch on.

The New Tax Reform Could Indirectly Boost the Price of Bitcoin

While the new tax reform may simplify the U.S. taxation system and would benefit corporations and individuals in specific tax brackets, the new reform would likely also add trillions of dollar of debt over the next decade.

For this reason, President Trump’s new tax reform could bode well for the performance of the price of bitcoin as an increase in government debt will weaken the US dollar and the performance of the stock market in the long-run. Investors will, therefore, likely look for alternative investments such as bitcoin to place their funds into, which could give the digital currency a substantial boost.

$ 7 Trillion in New Debt Will Weaken the US Dollar

Currently, the national debt stands at over $20 trillion and should the new tax reform be implemented in its current state, this figure could balloon to as much as $27 trillion as up to $7 trillion would be lost in tax revenue according to CRFB estimates.

Economic theory tells us that an increase in a country’s debt to excessive levels will weaken a country’s currency. The closer a country comes to defaulting on its government debt payments, the more likely its sovereign currency will lose value. Therefore, should the new tax reform pass and the national debt continue to balloon, the U.S. will most likely witness the value of the dollar plunging against other major currencies.

In that case, it is likely that more investors will diversify away from the dollar and into other currencies, including digital currencies such as bitcoin as a hedge.

Stocks Could Tumble and Lead to Greater Alternative Asset Investments

An increase in national debt levels would also destabilize financial markets and weigh on the prices of stocks as we were able to witness in 2011 when the US was forced to raise its debt ceiling not to end up defaulting on its national debt. In the two weeks that encompassed the decision to increase the national debt ceiling, the stock market crashed by over 16 percent as investors priced in a potential slowdown in future economic growth.

According to The Heritage Foundation, “[…] advanced economies like the United States are at risk of significant and prolonged reductions in economic growth when public debt reaches levels of 90 percent of GDP. High public debt threatens to drive interest rates up, to crowd out private investment, and to raise price inflation,” while a World Bank study in 2010 concluded that if a developed economy’s debt-to-GDP ratio exceeds 77 percent for an extended time period it will slow the country’s economic growth. The federal debt-to-GDP ratio in the U.S. is currently at 103 percent according to the Federal Reserve Bank of St. Louis.

While cutting corporate tax rates may give stocks an initial boost, much of that has already been priced into the market when President Trump won the elections in 2016 as his tax reform plans were a key part of his political agenda during his campaign. However, if a tax-relief driven short-term boost in corporate after-tax earnings will lead to an increase in national debt, the stock market will not benefit from the corporate tax cuts for long.  

A further increase in the level of the national debt will weigh on the country’s economic growth prospects, which, in turn, will negatively affect the value of stocks in the coming years.

In such a scenario, it is very conceivable that investors will look for other asset classes to invest in for the purpose of hedging as well as in search for strong returns. That is where bitcoin and other digital currencies can offer an excellent investment opportunity due to their uncorrelated nature and high returns potential. Furthermore, with the increasing interest by institutional investors in the cryptocurrency market, it is not unlikely that a slowdown in the stock market could lead to a rally in bitcoin and other digital currencies.

Whether you agree or disagree with the Trump administration’s proposed tax reform, as an investor you should consider the implications the tax reform may have on the value of the dollar, stocks and other financial assets. Moreover, you should ask yourself whether more individuals and fund managers will diversify into bitcoin as a way to hedge their portfolios using an uncorrelated asset with high returns potential.

If you believe that bitcoin could flourish as an alternative asset under the new tax regime, then you should buy bitcoin before the bill is passed.

Article written by Alex Lielacher, Founder of and cryptocurrency expert. 

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Bitcoin Prevents War

President Trump probably made a nice bundle on the missile manufacturer Raytheon stock recently after dropping their products on Syria. In 2015, Raytheon was named in Trump’s portfolio in an FEC filing for having made less than $200. Today, the cash amount probably exceeds that number, and we will probably see the profit from this stock in the next Trump FEC filing.


These records and research of the US Government Office of Ethics are searchable and public as required by good governance to limit and deter conflicts of interest just like this one. Though civil servants are required to show these records, our individual taxes paid are not traceable. The technology needed currently exists to distribute each of our payments and make them fully accountable.

Imagine that you could publicly track your tax payment to a slush fund and then into one of the $1.4 million price of each Raytheon missile. You could accurately calculate the money each operation costs, what department of the government issued it, even the base and soldier that released it. Imagine you can access this information as an American citizen but having the ability to keep it private from others, just like many of our other services like Social Security, and only allow those with full clearance to see everything while only revealing limited information to the public instantly. If funds are registered on the Blockchain, you would be able to do this easily. In fact, we could trace which towns and states paid for each of these missiles. Would this stop the war? Perhaps, as our ability to discourse on the internet would be backed by information. Now, we can accurately answer the question of “if we can fund these missiles how come we cannot feed hungry people?”

Groups of people could organize, exchange ideas, and quickly trace each payment when they visit their elected officials and when they pay taxes. Imagine Facebook and Twitter as a public utility. Voting could be done on the blockchain, too. Corruption could be a thing of the past as no dollar could be siphoned off as it is now due to traceability and the opacity of current governance models. Transparency is the future of governance as we build out these tools and this is the promise of decentralized technologies.

Imagine what we could do with $2.99 trillion and the level of genuine democratic engagement created by this transparency.

Why Trump would be the Bitcoin Volatility driver in 2017

2017 saw Donald J Trump take the office as the new President of United States of America. Right from the moment trump took to office, the global markets were facing uncertainty which lead to price fluctuations over speculation. Economists around the world predicted that Trump’s election might crash the markets. After taking to office, Trump has come out with policies that surely impacted the markets in ways more than one expected. President Trump has been delivering on his promises and has been resilient in sticking to his policies. While the global markets are certainly impacted by the policies, let’s look into how Bitcoin will be affected:

Trump’s initial firm steps:

When Trump announced the Visa ban for seven small economies, things didn’t seem so bad for the markets. The commotion that followed the decision, where major tech giants have joined forces to fight the policy has created uncertainty in the market. This lead to rise in Bitcoin prices during the period as a hedging measure by major market players. Later, Trump suffered a major set back in the appeals court on his immigration ban. The Bitcoin markets have turned a blind eye to this decision showing Trump’s credibility to affect the markets with policies whereas Trump’s setbacks weren’t that important. This only means Bitcoin markets would thrive on the uncertainty created by Trump’s surprise policies.

How Trump’s next steps would be impacting Bitcoin:

President Trump promised phenomenal tax plans last week which prompted for trades going long on dollar and US equities and short on Treasuries. Added to that Trump’s meeting with Japan’s Prime Minister Abe is set to have a short term bullish effect on Dollar-Yen Trading pair. Abe is bringing loads of investment promises which Trump is sure to promote heavily. If Trump does it, without thinking of currency manipulation, then USD/JPY can have a decent spike higher.

Nevertheless any shortcoming on his tax plan promises or mentions of currency manipulation with Japan would see a lot of turmoil in the market and hedging in Bitcoin. This would lead to increased volatility in Bitcoin prices. The first year of Trump’s administration with policies inflicting too much volatility in global markets would inturn make Bitcoin markets volatile.

Here’s Why Bitcoin Might Soar Higher Under President Trump

Donald Trump, the 45th President of the United States is already settled in the Oval office and he has begun implementing some policy changes. However, Wall Street is still somewhat immune to the expected negative effects of a change in the leadership of the American government. Many analysts submitted that Trump’s victory at the polls would cause equities to crash but U.S. stocks have gone on to record new highs.

Market bears also held out hope that the U.S. equities markets will crash once Trump takes the oath of office. However, U.S. stocks have maintained the bullish rally and the Dow Jones is actually staying on course to 20,000. Interestingly, Trump’s victory has a direct influence on the price of Bitcoin because Bitcoin is an alternative currency that provides investors with a safe haven in times of volatility in the economy and in the financial markets. This post seeks to explore how Bitcoin is likely to fare under President Trump.

Bitcoin to shine brighter under president Trump

Donald Trump’s actions, inactions, and words have a huge influence on the global economy and Bitcoin is not likely to be spared from that influence. Nonetheless, it is becoming increasingly obvious that the Trump factor could provide bullish tailwinds for the Bitcoin investment community.

To start with, Bitcoin was the only asset that recorded marked gains on the heels of Trump’s victory in the 2016 U.S. the presidential elections. After Trump won the election, Bitcoin recorded the biggest gain among all financial instruments from under $700 to more than $736 within a couple of hours.  In contrast, U.S. stocks recorded a flash decline before they recovered after investors started warming up to the idea of President Trump.

Of course, realists will be quick to point out the fact that Bitcoin recorded those gains because of an increase in market fears that Trump’s victory will trigger a fresh bout of uncertainty in the global economic and financial landscapes. However, the fact remains that Trump is one of the most controversial public figures in recent times and his position as the president of the United States will amplify the volatility and uncertainty caused by the controversies surrounding his presidency and his policies.

Trump might become sympathetic to Bitcoin

The second reason Bitcoin investors might enjoy bullish tailwinds under President Trump is that Trump might turn out to become sympathetic to Bitcoin. Trump already has Bitcoin supporters such as Mick Mulvaney and Peter Thiel in his team.

For instance, Mick Mulvaney openly supports Bitcoin, Blockchain technology, and the development of cryptocurrency. Mulvaney is tapped as the Director of the Office of Management and Budget in Trump’s administration. Peter Thiel is another outspoken Bitcoin supporter and he has investments in a number of Bitcoin startups. Hence, we can reasonably expect that these men who has the president’s ears could ‘lobby’ for policies that provide an enabling environment for Bitcoin to thrive.

Global markets tank, Bitcoin’s uncertainty lets Gold regain its stature as ‘Safe Haven’

The global markets slumped on January 12, 2017 after a news conference by President-elect Donald Trump. Assets declined across the globe with European, Asian shares and S&P 500 futures all falling, while the dollar slumped against most currencies. The conference disappointed the institutional investors with reveals to very little details as to economic and trade plans. This element of uncertainty resulted in a major slump in US dollar trading after recovering from a three week low. Surprisingly even after so much market commotion, the Bitcoin price remained unaffected despite so much market activity. Let’s look into why Gold reigned while Bitcoin was left behind during the latest market collapse:

Bitcoin stagnant as uncertainty looms:


The year had a lot of surprises that came as backlash for Bitcoin’s Bull Run which neared the all-time high start of this year. Firstly when the prices approached all time high, panic associated to Chinese policies led to the first stage of the collapse. After briefly trading at $900 range for quite some time the next collapse occurred a couple of days later. This was majorly due to the news that Peoples Bank of China has acted on Bitcoin regulation in 2017. They have contacted exchanges to monitor the process in order to avoid currency getting out of the country.

Following the second crash, Bitcoin has formed some kind of support around $750 and has been trading in the area ever since. It remained unaffected during the Yuan’s fall and the global market’s pandemonium since the investors are looking at it cautiously now. After trading sufficient volume and building a strong support, it might finally take off and adhere to the conventionally observed fundamentals.

Gold returns as the only ‘Safe Haven’:


Gold spiked up to over $1,200 after Wednesday’s shift in market dynamics. The price jump for a mere market scare can be attributed to Bitcoins unavailability during this time. The fact that Bitcoin rallied upto the high but wasn’t able to breach it significantly has left an element of doubt in the minds of institutional investors. Hence the general inflow of funds has been redirected to Gold, retaining its status as  reliable asset. Whether Bitcoin would be able to displace Gold again as a security asset or Gold will continue to dominate this sector, only time will tell.


China looks to halt Yuan’s fall, tumbles Bitcoin instead

Ironically, for a country that has banned Bitcoin and other cryptocurrencies, China remains to be the highest contributor to Bitcoin in terms of volume. With a total contribution of whooping 96% in 2016, China is a major influencer when it comes to Bitcoin prices. Be it the surprise bull run mid – 2016 or the short term fall in prices or the big push towards the end of the year, China has always had a major hand in it. Coming strongly into the New Year, the Bitcoin Bull Run came to a halt owing to Chinese policies. 5th of January saw Bitcoin dropping from near all-time high to under $950 in a short span of time. Let’s dive deep into how this happened and what might be the fate of Bitcoin from here:

Capital controls kicking in?


The Chinese authorities have closely monitored Bitcoin in 2016 to validate the boost patterns. After thorough analysis, they have concluded that Bitcoin is used to launder money out of the country. China as such has strong capital controls and conversion of local currency into foreign currency is well accounted. Owing to the peer to peer nature of Bitcoin, it has become one of the viable routes to launder money out of the country. Hence Chinese authorities have employed strict capital controls over Bitcoin. These measures require identification and completion of detailed forms to convert yuan into foreign currency. These measures may now be starting to work as the currency becomes scarce offshore.

Halting the Yuan’s fall:


Chinese Yuan increased by 1% following a weak dollar as interest rates rose by 96% in Honk Kong on Thursday. While China has halted the Yuan devaluation temporarily after being included in the SDR basket, they still have some devaluation left to do. Market analysts are betting on a decline of yuan this year to 7.15 from the current 6.8125 but this would trigger a hostile situation with USA. Hence to hold off on the same order China might order their state-owned companies to sell their foreign reserves.

Future Dynamics with US and effect on Bitcoin:


Trump has labelled China as a currency manipulator and aims to negotiate a “fair and free” trade arrangement with China. To escape the falling value of their currency, Chinese citizens started investing in Bitcoin, changing the path of the capital. To stop further devaluation, China is looking to sell foreign reserves. But as this can’t be executed completely owing to US policy intervention, further devaluation of Yuan is likely and definitely set on the cards. Hence Bitcoin will continue the climb once the Yuan dynamics strike a balance.

Why 2017 can turn out to be very positive for Bitcoin

Bitcoin has had a strong start to 2017 with the trend looking strong enough to break the all-time high set in 2013. 2016 has been a positive year for the cryptocurrency with the currency showing an increase of $460 during the year. Most investors have resorted to use this digital asset as a portfolio diversifier and it has proved out to be a winning gamble. Fundamentally this was a well thought out move and it payed off with good dividends. But the question lingering in the minds of many Bitcoin enthusiasts and investors is how these strategies and Bitcoin would fare in 2017.  Let’s look into few reasons why we believe Bitcoin would continue to weather the terrain to outperform assets:

China and the East step up the game:



China has always been a major price and volume driver for Bitcoin. The Yuan trading volumes observed a major uptick towards the year end owing to the Chinese Government’s announcement of imposing capital controls over Bitcoin. While this might happen sometime late this year, people are now actively moving funds out of the country at a very quick pace. This avalanche might last for a good amount of time into 2017.

With Japan abolishing sales tax on Bitcoin, South Korea encouraging Bitcoin and Blockchain accelerators and India’s demonization prompting for a cashless Indian society, the contributing prospects from the east only look stronger.

Eurozone’s loss would be Bitcoin’s gain:


The staggering effect of Brexit this year was evident when the European markets collapsed while Bitcoin soared mid-year to trigger a bull run. This quick transfer of funds into a digital unrelated asset has been the defining aspect of 2016’s Bitcoin Bull Run. In the face of Geo-Political crisis Bitcoin has replaced Gold as the safe hedge. With Eurozone still wobbly with impending debt and banking bail outs, cryptocurrencies seem to be a safer option for investing and hedging.

With Italian banking bail outs, Spain’s growing recession, ongoing crisis in Greece and post effects of Brexit, 2017 would see heavy activity in Bitcoin owing to the European continent.

USA’s growing adoption levels and the Trump factor:


The regulation of cryptocurrencies has been a hot topic in the US senate in 2016 and has seen some implementation in major states. With Trump’s policies aligned with major changes required to accelerate Fintech industry, adoption might reach higher levels in 2017. With thoughtful regulation and strong backing, mainstream adoption looks very viable in USA which would drive prices significantly in 2017.

Summing up, 2017 looks very positive for Bitcoin and Blockchain with the cryptocurrency all set to reach new levels of penetration.

Towering speculations over Bitcoin price in 2017: $2000 on the cards?

Bitcoin supporters are seeing 2017 as a very positive year owing to a pool of factors. From Trumps presidency to EU – led bail outs, improving adoption to increasing investments, the market dynamics look very favorable for the price. Many mainstream groups have openly come out with their support towards the cryptocurrency and discussed about the possible factors influencing their decisions. Bitcoin has recently touched its year’s high and has still been on a bullish path. Going strongly into the next year, let’s look into the predictions centering Bitcoin and possible investment opportunities:

The Trump Factor:


Trumps economic policies as per his Presidential Campaign, look very favorable for the growth of Fintech services. Especially Trump promised fiscal spending binge might add to approximately $20 trillion of U.S National Debt. This would triple the current U.S budget deficit from about $600 billion to $1.8 trillion. The move would cause the growth and inflation to increase unproportionately. Consequentially this would result in a hike in the interest rates and might see US dollar soar new heights. The economic fabric would be disturbed on a hike and would have a significant impact on the emerging markets and China in particular. To get away from the rippling effects of such impact, people would move to invest in cryptocurrencies and opt for alternate payment systems.

The EU Fall Out:


Post the housing collapse and its crippling effects; the European Union has experienced real turmoil in terms of ‘Debt Crisis’.  Luckily Greece will receive a short term debt relief from Eurozone creditors to stay afloat, though IMF was not on board. Bad lending practices have landed Italy in the same zone, with people voting against constitutional reforms. Italian Prime Minister Matteo Renzi is now poised to resign after suffering the referendum defeat. With so much turmoil in Eurozone, next year is going to be very unpredictable and would see European commodity prices waver with high volatility. Historically with events like Brexit, where European commodities tanked, Bitcoin prices soared proportionately indicating the inflow of funds. Hence a similar move can definitely be expected for any of these eco-political events.

Saxo Bank predictions:


Saxo Bank is a Danish Investment Bank that has been prominent since 1992. Earlier CEO of Saxo, Lars Seier Christensen was personally vested in Bitcoin and hence the firm took a keen interest in cryptocurrencies. According to their recent prediction list, Saxo bank says that Bitcoin price might very well surpass $2100 in 2017.

Saxo explained that:

“If the banking system as well as sovereigns such as Russia and China move to accept bitcoin as a partial alternative to the USD and the traditional banking and payment system, then we could see bitcoin easily triple over the next year going from the current $700 level to +$2,100 as the block-chains decentralised system, an inability to dilute the finite supply of bitcoins as well as low to no transaction costs gains more traction and acceptance globally.”

This is also backed by Trump’s policies, Russia’s steps to legalize Bitcoin after a temporary ban and many other factors that are favorable.

Can Trump be the boost Bitcoin is looking for?

Donald Trump is the victorious and charismatic Republican Presidential Candidate, all set to take the office as the 45th American President. Trump’s ideology and power packed appearances have begun to cause fear among the equity market participants. Many market pundits have predicted a prolonged and sharp fall in global commodities prices if Trump gets elected. Contrary to these speculations, the markets plunged temporarily and rose back again with minimal impact. But in those brief moments of sheer scare, Bitcoin saw a lot of promise owing Trump’s presidency. Let’s look into the details of how Trump’s presidency can indeed be favorable for Bitcoin:

Trump and Bitcoin:


While Hillary had openly condemned cryptocurrencies, Trump has been very understanding about the concept. Even during the campaign, Trumps statements have impacted the Bitcoin market to an extent. Especially during Brexit, Trumps statements about many Trade deals have fueled the Bitcoin price boost. The day trump became the President elect while the global markets tanked, Bitcoin prices soared owing to inflow of funds from other currencies.

The favorable economic policies:


When it comes to fintech, a lot is dependent on the regulations imposed by a particular state. The economic policies might trigger or hinder the fintech growth, depending on their are handling. Trump has had “removing regulatory reforms” in his agenda which would prove advantageous for fintech. The regulations revolving around fintech are very old and don’t have the adaptability to adjust to changing times. This implies that the regulatory environment may, finally, become far more welcoming for Bitcoin and Blockchain Technology.

Adding to this, any renegotiation of NAFTA agreement in the favor of US will help setting up better export opportunities for US citizens. This might see increase in terms of volumes for Bitcoin across borders for export payments.

Trump’s non tolerance towards remittance:


A ‘Wall’ to stop Mexican immigrants has been the central theme of Trump’s Election campaign. The strong underlying belief behind this propaganda is that the remittance money is getting out of US soil. If Trump goes on to his execute his regressive policies against remittance, then Bitcoin would be the only option for ease of transfer. This would surely make Bitcoin a better trusted and most opted source adding to Bitcoins increasing growth and adoption.