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Bitcoin Becomes Hot Election Topic as Trump Comes Close to Promising a Strategic National Reserve

CryptoNewsCryptoNews2024/08/23 12:03
By:Michael GrawMedb Kiely-Cuddy
Last updated:
August 23, 2024 04:45 EDT
Disclaimer: The text below is an advertorial article that is not part of Cryptonews.com editorial content

Owing to the prominence of cryptocurrencies, with Bitcoin being the headline act in mainstream circles, the presence and use of the coins has become a hot topic among American politicians vying for power. Already, a US senator has drafted legislation for a new strategic reserve of Bitcoin, which would be funded, in part, by a revaluation of the Federal Reserve’s gold.

Apparently, 200,000 BTC would be purchased over five years, per Cynthia Lummis’ initial drafting. Seeing an opportunity to curry favor, former President and Republican nominee Donald Trump has leapt at the buzzword. He’s promised major changes in regulatory leadership and committed himself to the crypto community. If elected American President, the anti-crypto crusade , as he called it, would come to an end.

This is, of course, despite the many anti-crypto rulings that came into play during his last term in the Oval Office. In any case, his pledge did stop just short of promising a new Strategic Bitcoin National Reserve. Even so, the potential for one has people wondering just how mainstream Bitcoin and its kin have become, and what such a move would mean for the community and traders.

Growing Prominence But Still Niche

To say that cryptocurrencies have become mainstream would be something of an overstatement. The knowledge of their existence is mainstream, and to an extent, trading leading coins is also mainstream within the investor community. For their actual use as a form of tender, as hoped for by Satoshi Nakamoto, crypto is exceedingly niche. Still, there is a growing belief that digital assets will become more mainstream, which investors are banking on.

That said, ownership is on the rise, and the ways in which crypto can be openly used is growing. In the UAE, over 30 percent of the population owns crypto, followed by 21 percent in Vietnam, 15 percent in the US, and 13.5 percent in Iran. El Salvador also became the first country to name Bitcoin as legal tender in 2021, followed by the Central African Republic. Many South American countries have since seen a rise in crypto adoption and use.

Actual usage does vary greatly around the world, beyond simply trading between peers or as investment vehicles. In Australia, the world’s first real-time crypto payment solution was deployed to allow for crypto payments at Peregrine petrol stations. In the iGaming industry, crypto has also become very popular. This is particularly true for the Dutch, as many of the best online casinos in the Netherlands , like BM Bet and NewLucky, are designated crypto casinos.

Singapore has also seen its premier companies get on board with crypto. Grab is a colossus of an app. One of the super apps emerging from the Far East markets, it boasts ride-hailing, digital payments, and food delivery options all in one. This year, it partnered with Triple-A to facilitate payments in digital currencies to and between businesses. As for international companies, Tesla, Microsoft, and Rolex have all been open to payments in crypto.

US to Buy Up Lots of Bitcoin

It should be stressed that nothing is set in stone in the US pertaining to a national strategic reserve of cryptocurrencies. After all, all that’s happened is a bill has been introduced and a presidential candidate has paid lip service to the idea. Donald Trump stopped short of making any promises while in Nashville for the 2024 Bitcoin Conference, but now that the idea is out there, it’s seen as a political battleground.

A think tank cited crypto assets as being key to the election, and that Kamala Harris, the current Vice President of America and Democratic presidential candidate, should showcase that she’s open to the community. She hasn’t publically embraced the blockchain sector that many see as a building block of the future across the board.

This was clearly showcased in the movement of Bitcoin’s price after Trump’s speech. It bumped some seven percent after he used the term “the Bitcoin superpower” in regard to the US under his potential next reign. Clearly, those trading in crypto see such a move from the US as a good thing. The backing of the US in such a way would certainly add some additional validity to cryptocurrencies, which would only empower the sector further.

Were there to be a Strategic National Bitcoin Reserve in the United States, cryptocurrencies would more than likely remain as volatile as ever, surging and crumbling in price to the public comments made by powerful people. Yet, what it does speak to is the mainstream acceptance of the tech and, potentially, an increase in its applications.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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