Post by em on Nov 3, 2024 8:45:37 GMT 12
PDF here papers.ssrn.com/sol3/papers.cfm?abstract_id=4985877
On the Republican side, former President
Donald Trump has made a dramatic pivot in his approach to crypto assets (ibid). Once a critic, Trump
now presents himself as a champion of digital assets, embracing the industry. For example, when
Trump spoke at the Libertarian National Convention on 25 May 2024 and promised supporting Bitcoin
if elected and emphasised that Bitcoin holders already represent 50 million voters in the US:
“I will ensure that the future of Crypto and the future of Bitcoin will be made in the USA, not
driven overseas; I will support the right to self-custody to the nation’s 50 million crypto-holders,
I say this, with your vote; I will keep Elizabeth Warren and her goons away from your Bitcoin,
and I will never allow the creation of a central bank digital currency.
” (Gerard 2024)
Trump continued to ramp up his support for Bitcoin over the course of the campaign. He appeared at
the Bitcoin 2024 Conference in Nashville on 27 July and signalled to the Bitcoin industry:
“In just 15 years, Bitcoin has gone from merely an idea posted anonymously on an internet
message board to being the ninth most valuable asset anywhere in the world. … It's already
bigger than Exxon Mobil. Soon it will be surpassing the entire market cap of silver. … One day
it probably will overtake gold… …bitcoin and crypto will skyrocket like never before, even
beyond your expectations… Because when America is prospering, bitcoin is soaring, and it will
go up with it…. During my four years in office, bitcoin surged by 3,900%, from $898 the day I
took office to $35,900 the day I left… Now, compare that to just after three and a half years of
Biden and Harris adjusted for inflation, bitcoin is up 50% now 50% sounds good, but not when
you're comparing it to almost 4,000% right?
… if I am elected, it will be the policy of my administration, United States of America, to keep
100% of all the bitcoin the U.S. government currently holds or acquires into the future, we'll
keep 100… This will serve, in effect, as the core of the strategic national bitcoin stockpile. … …
I take steps to transform that vast wealth into a permanent national asset to benefit all
Americans. … You are the modern-day Edisons and Wright brothers and Carnegies and Henry
Fords, and what you do in your lifetime stands a chance to outlive us all and inspire humanity
for generations to come.”
Trump does not explain in his speech what services of Bitcoin to society would justify its current and
future ever higher valuation, even though he compares it to past innovations for which this was rather
clear. This shift aligns with the broader Republican stance, which generally favors less regulation and
more market-driven approaches to the crypto sector (Bitfinex 2024).
And RFK jnr at the same convention …
Kennedy promised in the 2024 Nashville Bitcoin convention
on 27 July 2024 that he would order massive purchases of Bitcoin by the US Treasury if he would be
elected and in addition that Bitcoin would effectively be exempt from capital gains taxation and from
controls against illicit payments:
“I intend as President of the United States to sign an Executive Order on day 1… to transfer
approximately 200,000 Bitcoin held by the US Government to the US Treasury where it will be held as a
strategic asset. …. On day one as President, I will sign another Executive Order directing the US Treasury
to purchase 550 Bitcoin daily until the US has a reserve of at least four million Bitcoin. … our nation holds
approximately 19% of global gold reserves; this policy will give us around the same proportion of total
Bitcoin. The cascading impact of these actions will eventually move Bitcoin to a valuation of hundreds
of trillion of dollars. On day one as President, I will sign also an Executive Order directing the IRS to issue
public guidance that all transactions between BTC and the USD are unreportable transactions, and by
extension untaxable. … Bitcoin is a technology for freedom, for optimism, for independence, for
democracy, for transparency, it is the currency of hope, it is the perfect currency.”
Kennedy did not elaborate further on why he believes Bitcoin to be the perfect currency, and what
would justify making Bitcoin transactions against USD unreportable and untaxable. In any case, a total
valuation of “hundreds of trillion” of USD of Bitcoin would imply a valuation of one Bitcoin of at least
10 million USD. Kennedy suspended his campaign on 23 August 2024. He has since the endorsed
Trump (CNN 2024).
