Trump attended the Bitcoin conference in Nashville a few hours ago and gave a keynote speech.
The full text of the speech can be viewed by replying "Trump" to this official account.
But I'll record the key points below:
- Bitcoin is what the steel industry was a hundred years ago, and I think Bitcoin is still in its infancy. Bitcoin's market value may surpass gold, but based on the current situation, this is likely to become a reality.
- Ensuring America becomes the global cryptocurrency capital and the world’s Bitcoin superpower
- The left is against Bitcoin. Very much against it.
- Stablecoins will allow us to expand the dollar’s dominance into new areas around the world.
- If I were elected President, this would be the policy I would implement: The U.S. Government would retain 100% of all Bitcoin currently held as part of the U.S. Government’s eventual rollout.
Next, I will explain why Trump made these statements one by one:
1. The dollar needs a new reservoir
“Bitcoin is what the steel industry was a hundred years ago, and I think Bitcoin is still in its infancy. Bitcoin’s market cap could surpass gold, but based on current conditions, that’s unlikely to be the case.”
From the end of World War II until the collapse of the Bretton Woods system in 1972, the US strategy was to maintain a stable ratio of 35 US dollars to 1 ounce of gold, but it gave up after less than three decades.
The price of gold per ounce has skyrocketed from US$35 to US$2,000. In fact, the price of gold is almost the same as the price increase in the United States. From this perspective, it is equivalent to the US dollar depreciating by dozens of times.
In order to prevent everyone from rushing to buy gold, the United States used a big move during the Reagan administration, forcibly raising the interest rate on U.S. Treasury bonds to a level higher than that of gold, so that it would be more cost-effective for everyone to buy U.S. Treasury bonds.
In this way, the dollar's hegemony has finally been extended for a few more decades.
It seems that the U.S. debt's high-interest rate path is no longer sustainable. In June of this year, the U.S. expenditure on debt interest exceeded its defense spending for the first time!
Theoretically, if cryptocurrency plays the role of a reservoir, it may become a new reservoir for absorbing US dollars.
2. The reservoir must be managed by itself
“Ensure America becomes the global cryptocurrency capital and the Bitcoin superpower of the world”
Why did the United States choose to use gold as a banker after the end of World War II?
Because at that time, the United States’ gold reserves accounted for 70% of the world’s total!
So how much Bitcoin does the United States hold now?
According to Trump, only 1%.
But now, quietly, through ETFs, supporting listed mining farms and other means, American capital is controlling more and more Bitcoin infrastructure.
The surge in Bitcoin’s value must come after the American capitalists have absorbed enough chips and computing power, otherwise wouldn’t it be making things easier for others?
Building mines in the United States requires a large amount of electricity, and the energy industry is also one of Trump’s bases.
3. Why do the left oppose encryption?
The short-term reason is simple: it is inconvenient to collect taxes.
The leftists all over the world are united in actively collecting taxes. However, when it comes to spending money, some leftists will provide high welfare benefits to the people, while others will spend the money elsewhere.
Therefore, Trump also focused on attacking the Democratic Party’s taxation and inflation hidden tax. The original text of Trump’s speech included:
The current government's economic plan includes trillions in new spending and $5 trillion in tax increases.
I will make the Trump tax cuts permanent and provide big tax cuts for families, individuals, and job-creating businesses, including no tax on tips.
Inflation is a destroyer of a nation. You can look back at Germany many years ago and see what happened during their great inflation, which destroyed the nation.
I have to tell you, Bitcoin enthusiasts, that you recognized the dangers of inflation long before most.
The ridiculous waste of trillions of dollars by our opponents has resulted in the value of every dollar being quickly wiped out by 20%, 30%, even 40%. You understand this, but many others don't. The life savings of millions of Americans have been quickly destroyed.
At the same time, this is also the reason why he opposes CBDC (central bank digital currency).
Because CBDC will help the government collect taxes more conveniently.
4. The crypto industry defends the status of the US dollar as a payment method
After the decoupling of the U.S. dollar and gold, the dollar's value storage properties are left to U.S. Treasuries to defend.
What guarantees the dollar's payment status is oil.
These initiatives were established at about the same time and appear to have reached the end of their life cycles.
While U.S. debt is unsustainable, with the development of new energy technologies, the status of oil is not as stable as it used to be.
In Trump's vision, stablecoins in the future can help the US dollar continue to maintain its dominant position.
Trump's original speech was:
America will be all over the world, America will be richer, the world will be a better place, billions of people will be included in the crypto economy and put their savings in Bitcoin, that's the truth. Those who say Bitcoin threatens the dollar have it all wrong, Bitcoin is not a threat to the dollar, what is really threatening the dollar is the actions of the current Biden administration.
If people all over the world can use stablecoins to buy U.S. stocks and bonds and earn interest on deposits in U.S. banks, how much profit would that bring to the world?
5. Federal Reserve plans will be proposed in due course
“If I were elected president, this would be the policy I would introduce: 100% of the Bitcoin currently held by the U.S. government would be retained as part of the eventual rollout of the U.S. government.”
In fact, the day before Trump’s speech, independent presidential candidate Kennedy Jr. announced that if he was elected president, he would establish a reserve of 4 million Bitcoins.
But this is actually a very difficult promise.
A real banker will never absorb chips in a high-profile manner.
Compared with Kennedy Jr., Trump's speech is much more stable. After all, the price of Bitcoin will eventually be driven up by the purchase of real money.
Like many governments, the U.S. government currently holds most of its bitcoins acquired through legal action.
Trump also mentioned in his speech:
"What they take from you, they take your lives, they take your families, they take your homes, they take your virtual currency. That's the direction this country is heading in, it's a fascist regime."
To sum up, the future trend of Bitcoin is probably like this:
Before the election, the market was boosted by Trump's rhetoric;
If Trump is elected, the US will rely on monetary easing to boost the market!
