Trump's Bitcoin End-Goal?

The presumptive 2024 president is beginning to see the asset class as a way to keep a lead over China.

Author

Dillon Newman
July 17, 2024 • Estimated Reading Time: 3 minutes

Earlier this year, we covered how bitcoin was playing a pivotal role in this year’s election by highlighting the stark differences between the two party’s stances on cryptocurrency.

In the piece, we explained that as more and more Americans own crypto, the Biden administration’s crackdown on the asset would drive voters into the arms of Trump and the Republican party.

And while that may be true, in reality Biden’s dismal debate performance (among many other things) will have more to do with Trump winning than Bitcoin alone.

But, what may have started as Trump leaning into crypto as an antithesis to Biden, has turned into a full-throated love for the asset class.

Furthermore, the presumptive 2024 president is beginning to see the asset class as a way to keep a lead over China.

Here for example is what Trump had to say this week in an interview with Bloomberg:

I remember when you said it was a “fraud” and “a disaster waiting to happen.” And by the way, you were not wrong. There have been disasters and fraud. But more recently, you’ve embraced the community. You said it should be made in the USA. So tell me why you changed your mind.

If we don’t do it, China is going to pick it up and China’s going to have it—or somebody else, but most likely China. China’s very much into it. Also, it’s not going away. It’s amazing…

Now, if I throw it aside, it’s going to be picked up in another country, most likely China—they’re pretty advanced in that sphere. So you have to look at it—what I want, again, is what is good for the country…

So we have a good foundation. It’s a baby. It’s an infant right now. But I don’t want to be responsible for allowing another country to take over this sphere. And so I think we’re going to be good. Also, I’ve gotten to know people in the industry, they’re top-flight people. And you ask Jamie Dimon, Jamie Dimon was, you know, very negative and now all of a sudden he’s changed his tune a little bit.

So, why is he worried about this when China banned bitcoin mining and trading in 2021?

Well, reports have begun emerging that China may be on the precipice of flipping their decision and not only allowing the trading of crypto but actually encouraging it. It seems that just as the US doesn’t want to cede to China, China doesn’t want to cede to the US. Classic game theory.

In the end, this is how bitcoin may just win – as a must have.