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CIO Bitwise: Politicians' Attitude to Cryptocurrencies "doesn't matter"

Forklog / 01.08.2024 / 10:48
CIO Bitwise: Politicians' Attitude to Cryptocurrencies "doesn't matter"

After returning from the Bitcoin 2024 conference, Bitwise investment director Matt Hougan concluded that the crypto industry is "not optimistic enough." 

Several recent promises made by American politicians at the event prompted him to "rethink the possibilities" of bitcoin.

Haugan highlighted several main points of the conference: 

Presidential candidate Donald Trump has announced plans to create a national bitcoin reserve and said he wants to make the United States the "crypto face of the world"; Senator Cynthia Lummis has introduced a bill that implies the purchase of 1 million BTC by the government;Member of the House of Representatives Ro Khanna (Democrat from California) stated the need to "reject the hostile policies of the past" and accept the first cryptocurrency as a "key part of the country's financial future";Independent candidate Robert Kennedy Jr. called on the US Treasury to purchase 4 million BTC. According to CIO Bitwise, this "sounded crazy" until he gave an explanation: the United States currently owns 19% of the world's gold reserves, and the proposed amount of bitcoins would represent a similar share.;Senator Roy Haggerty (Republican from Tennessee) he stated that the love for the first cryptocurrency is "in his DNA", equating the asset to freedom and independence, and his colleague Marsha Blackburn "drove trucks around the conference area", promoting support for digital gold;Vice President Kamala Harris did not attend the conference, but "felt enough political pressure" to reveal plans for a democratic "reset" for crypto companies.

"This is crazy. Less than two years ago, FTX collapsed, committing a historic fraud, bitcoin was trading at $17,000, and skeptics were dancing on the grave of the crypto industry. Now politicians are openly talking about building a Bitcoin Fort Knox," Hougan was surprised. 

He believes that it is easy to view Washington's adoption of cryptocurrency as "shameless opportunism." However, digital assets are a big political force:  More than 80 million Americans own cryptocurrency, and the industry itself has "one of the largest" super committees of political action in the United States.  

"Most politicians don't really like bitcoin, they just bow to its growing popularity. But I'm not sure it matters. When you say “opportunism,” I say, “That's how politics works.” Politicians accept cryptocurrency because Americans accept cryptocurrency," the top manager added.

Nevertheless, according to Hougan, "the fact remains", and the attitude towards the industry in the government has changed significantly. At the same time, he noted that there are now "equal risks" for both growth and market decline. 

Support for cryptocurrencies

Lightspark CEO David Marcus spoke in support of the Republican administration and Trump ahead of the upcoming US elections.

I am crossing the Rubicon and backing the Republican Party and President Trump.

Many — including a former version of myself — get trapped in a mental framework that becomes their identity and prevents them from radically evolving their thinking with new facts and information. I…

— David Marcus (@davidmarcus) July 31, 2024

He said that in a few years he had made a "gradual political turn of 180 degrees":

"At that time, I still believed in the generally accepted idea that Democrats should serve the people. However, I was shocked to learn that Republicans care more about their constituents, while Democrats, in my experience, care more about state power and control." 

Active support for crypto candidates is provided by the founder of MicroStrategy, Michael Saylor, who also spoke at Bitcoin 2024. He recently published a quote from Senator Bill Hagerty calling for "clarification" of the situation with digital assets in the United States. 

\"We need to make certain that it happens here in America.\" - @SenatorHagerty on #Bitcoinpic.twitter.com/HEIEro4V6S

— Michael Saylor⚡️ (@saylor) July 30, 2024

Earlier, the author of the bestseller "Rich Dad, Poor Dad" and entrepreneur Robert Kiyosaki expressed a positive attitude towards the ex-president. According to the businessman, if he wins, the first cryptocurrency will grow to $ 105,000. 

Recall that in July, Bloomberg journalists reported that bitcoin miners and crypto companies that were prevented from becoming public in the United States would benefit from the second Trump presidency.

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