BIDEN WINS! What does this mean for 比特币（Bitcoin） and Cryptocurrencies? America has finally chosen its new president, Joe Biden. The chosen Democrat, Joe Biden, will serve as the 46th president of the U.S. replacing Trump after a grueling election. We know that there is a lot of speculation and debate regarding the accuracy of the results. Additionally there is continual denial of the election results with the incumbent President Trump. But truth to be told, there isn’t much information to back his statements up. So it will just be a matter of time for Trump to give up his power. So now with a new president in place, what could this mean for Bitcoin and cryptocurrencies?
With the seemingly unstoppable trend in US Debt to GDP, quantitative easing and Bitcoin hash rate indicates a continual increase of Bitcoin prices. The price of Bitcoin could be inching towards $80,000 by 2024 according to Bloomberg analysts. Well there’s definitely been a lot of speculation with the prices of Bitcoin. But it has just broken through the $16,000 price levels during the time of this article. The prices of Bitcoin definitely seems to be bullish especially with the news of the election, but would it be possible for further adoption of cryptocurrencies with a new president?
The truth is President Biden has never had any known positions on cryptocurrency. Other than the Twitter hack that happened back in July which asked users to send Bitcoin to an address, Biden has never publicly spoken of cryptocurrencies. However, unlike President Trump who dislikes Bitcoin and cryptocurrencies, we may see a possible adoption of cryptocurrencies especially given the growth of the crypto industry. Moreover, we cannot neglect the fact that many potential cabinet members of Biden’s administration think positively of cryptocurrencies.
The Long Awaited Crypto Adoption we’ve been waiting for…?
One of Biden’s cabinet members and the first female Vice Presidents, Kamala Harris, has also not shared much of a perspective towards cryptocurrencies. However, one of her team members, Ryan Montoya, is one of the most crypto friendly, NBA’s most tech forward, and former CTO of NBA’s Scaramento Kings! He acts as Harris’ Director of Scheduling and Advance meaning he will definitely be able have her ears! Continuing with Harris, we definitely think that she could be a hip Bitcoin lover! Tim Draper, an VC investor, has said that given her action in California politics, she definitely will see the potential in crypto. So it might not be long for us to see more adoption for cryptocurrencies in the mass markets!
According to the latest news, Biden has confirmed Gary Gensler to lead the Financial Policy Transition Team. Gary Gensler is a Wall Street and Washington veteran that has studied cryptocurrencies closely. The former chairman of the Commodity Futures Trading Commission (CFTC) served as a key financial regulator for former President Barack Obama and helped resolve the financial crisis back in 08’. Most recently, he has testified before Congress about cryptocurrency and blockchain on multiple occasions. He even pushed back against several claims stating that cryptocurrencies were ponzi schemes and declared blockchain/cryptocurrency as a revolutionary technology. Gensler is also currently teaching a blockchain course at MIT Sloan School of Management. His appointment definitely raises hopes for the crypto community as he is very familiar with the technology and can help advance the policies.
What needs to occur for crypto adoption?
One factor that must be considered when hoping for mass crypto adoption to occur is the Democratic control of the Senate. The Senate will be decided upon on January 5th, 2021 between Repbulican and Democratic candidates. There will be two races, one will be held between Republican Senator Keller Loeffler (26%) and Democrat Raphael Warnock (32.9%). The other will be held between Republican Senator David Perdue (49.7%) and Democrat Jon Ossoff (47.9%). If Biden is able to receive the support from the majority of both Houses then it may be very likely for him to ease up on the hard stance taken by the Trump administration. This could mean that under the Biden administration they can take a more exploratory approach and enable development for blockchain projects.
Okay… what about DeFi?
From what we’ve known, Democrats have usually been relatively protective of end-users. The best example of this can be seen with Facebook’s Libra project being paused. With the complicated nature of DeFi platforms and its constant volatile growth, DeFi platforms may be at the chopping board in order to protect end-users. Despite the unfavourable outlook for DeFi platforms, many party members hold a bullish sentiment towards Bicoin and definitely sees a possibility for the development of a possible digital dollar.
The Future of Bitcoin…?
It seems that more and more companies and people are slowly adopting cryptocurrencies. Just recently, PayPal, an online payment company, has just offered all users in the US to buy, sell, and hold cryptocurrencies right from their PayPal accounts! Exciting news right?!?!! PayPal’s support for cryptocurrency is a major vote of confidence for the cryptocurrencies space. The company isn’t the first financial tech company to actually support cryptocurrencies. Square’s Cash app actually added its support for Bitcoin back in 2018. Moving forwards, PayPal is looking to expand its cryptocurrency features to Venmo as well and also international markets. By early 2021, PayPal plans to let users pay PayPal merchants with cryptocurrencies! This definitely helps to show the integration of cryptocurrencies into our daily lives and how cryptocurrencies is finally receiving its well-deserved attention.
*Note this article is not financial advice. DO YOUR OWN RESEARCH before investing in Bitcoin or any cryptocurrencies.