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As the Trump era dawns on the world, there are mixed feelings. On the one hand, there is the promise of a new age of politics brought on stage by a man that won the elections as an outsider. On the other hand, the anxieties stemming from the sheer unpredictability of the man. Yet there is one widely imagined benefit that Trump may have - He is good for Bitcoin.
Bobby Lee, CEO of BTCC is certainly upbeat about Donald Trump assuming the presidency. In a tweet, he says “Together, we can make #bitcoin great again”. Lee has been positive on Bitcoin prices for 2017 and in an interview with CNBC, which you can view here, he basically stated that geopolitical reasons will lead to Bitcoin rising to newer highs.
Donald J. Trump and the Federal Reserve are both critical factors when it comes to why Bitcoin may do well in the incoming administration. The Federal Reserve is likely to keep hiking interest rates, which will push up the United States dollar. Trump’s policies involve a massive amount of infrastructure building, which will likely give the dollar an upward edge.
As the Denmark-based Saxo Bank wrote in a report titled - Outrageous Predictions for 2017, “The Trump regime pulls out all the stops and jumps on a fiscal spending binge, further increasing the circa $20 tln of the United States national debt and in the process. This potentially may triple the current United State budget deficit from approximately $600 bln to $1.2-1.8 tln or some 6-10 percent of the United States’ current $18.6 tln economy.”
They add, “This creates a domino effect in emerging markets. China, in particular, leading people globally to look for alternative forms of currencies and payment systems not tied to central banks that have exhausted monetary policies or crony governments that are in full financial repression mode nor transaction systems that are long overdue for a revolution.” Interestingly Bobby Lee hasn’t missed out on this potential clue either. Look at what he has been retweeting below.
Finally, perhaps even if it is a long shot the thing that can work in favor of Bitcoin - the man in charge of the Trump administration’s budget office, Mick Mulvaney is a Bitcoin enthusiast and the founder of the Congressional Bitcoin Caucus.
Mulvaney has stated:
“Blockchain technology has the potential to revolutionize the financial services industry, the United States economy and the delivery of government services, and I am proud to be involved with this initiative.”
Mulvaney is also a gold investor and has accused the Federal Reserve of debasing the value of the dollar according to Bloomberg. All in all, it seems that the Trump era is likely to be a godsend for Bitcoin.
Chuck Reynolds
Contributor
