Bitcoin and American Politics: A Clash of Values and Future Directions

Recently, a high-profile Bitcoin conference has attracted widespread attention. As a heavyweight guest, Trump made a series of remarks at the conference that delighted cryptocurrency enthusiasts. He stated that the market value of Bitcoin will surpass that of gold, promised to replace the SEC chairman who is unfriendly to cryptocurrencies after being elected, and considered using the government's Bitcoin holdings as a strategic reserve. These remarks elicited an enthusiastic response from the audience.

With focus events such as ETFs, SEC regulations, interest rate policies, and the upcoming elections concentrated in the United States, the country has become a dominant force in the cryptocurrency market, almost controlling the "pricing power" of crypto assets like Bitcoin. The upcoming U.S. elections will undoubtedly have a profound impact on the crypto market, which is why the crypto community has been closely monitoring the relevant developments.

Regarding Trump's frequent gestures of goodwill towards cryptocurrency assets, some see it as a positive signal, while others question whether it is merely a tactic to gain votes. To assess the credibility of Trump's statements, we need to start from the fundamental positions and values of the two major camps, the Republican and Democratic parties.

The Affinity of the Republican Party with Bitcoin

The values of the Republican Party have long been highly aligned with the ideals of Bitcoin. The party has traditionally supported free market, economic policies of personal freedom, and conservative social views, leaning towards right-wing conservatism. Trump himself has also advocated for supporting technological innovation, protecting personal privacy and security, and opposing excessive centralized monetary control and financial regulation.

The core idea of Bitcoin returning financial power to individuals fully aligns with the values of personal freedom and market freedom advocated by the Republican Party and Trump. At the same time, as an emerging technology and investment opportunity, Bitcoin is also more likely to receive their favor and support.

This point can also be corroborated by Musk, who supports the Bitcoin ideology. Recently, Musk stated that he is an admirer of American values, transitioning from supporting the Democratic Party to now supporting the Republican Party, as he is looking for a party that better represents the American values he holds dear. Currently, the Republican Party aligns more with his expectations in upholding basic American principles such as individual freedom.

Of course, Trump's speech at the Bitcoin conference may have been somewhat exaggerated. His promises are likely to be discounted, after all, the main goal at this stage is to secure votes. If he really gets elected, he will need to weigh multiple interests when formulating and implementing new policies, which is bound to spark controversy.

The muted reaction of the Bitcoin market to Trump's speech shows that investors are well aware that they cannot just listen to his words, but must also observe his actions.

The Democratic Party's Attitude Towards Bitcoin

As the leading force of the current U.S. government, the Democratic Party's attitude in recent years has been evident. Although the attitude has somewhat softened as the election approaches, Democratic leaders, including Biden, the SEC chair, and presidential candidate Harris, actually seem to be less than welcoming to Bitcoin.

This is still a matter of values. As mentioned earlier by Musk, Democrats clearly hold a left-leaning stance and policy propositions, with some even criticizing them as "far-left." The Democratic Party's propositions include focusing on environmental impact and sustainability, addressing financial inequality and social justice issues, and strengthening regulation, reflecting values that weaken individual freedom and power while emphasizing public and collective interests.

Clearly, under this left-leaning value system, the core idea of Bitcoin is not so harmonious, so the leftist Democratic Party, including Biden and Harris, actually does not like Bitcoin very much.

The Trend of the Times: The Wheel of History Rolls Forward

Despite the differences, whoever is elected cannot change the major trend of history:

1. There are also many supporters within the Democratic Party.

Although the Democratic Party as a whole leans left, not everyone is "far left." Most people are still rational and will discuss issues based on facts. Previously, the Democratic Party has made it clear that they will align more with moderates on market and financial regulation issues, distancing themselves from the far left.

In a vote on a bill opposing crypto-unfriendly accounting policies, the Democrat-led Senate passed the resolution with 60 votes to 38, although it was ultimately vetoed by Biden. This indicates that there is a considerable portion of the Democrats who support Bitcoin. With the internationalization and mainstreaming of crypto assets, more progress may be made in the future.

2. Core Values of the United States

For a long time, Bitcoin has been regarded as one of the main challengers to the dominance of the US dollar and should be blocked. Even if the United States cannot completely block it, it has the ability to marginalize it. However, this is not the case, not only because of Bitcoin's own anti-fragility but also because it is difficult for Americans to go against the core values of the United States.

In American history, there was a ban on individual ownership of gold, but this prohibition was considered a violation of the principle of personal freedom and was seen as an infringement on individual liberty and property rights. The repeal of the ban in 1974 was viewed as a restoration of economic freedom and personal rights. Although the ban played a certain role in addressing the Great Depression, in the long run, it is seen by most as a failed policy because it restricted individual freedom and failed to fundamentally address economic issues.

Now Americans are well aware that it is difficult to prohibit private ownership of Bitcoin like they did with gold in the past. Firstly, there is the lesson of past failures, and secondly, Bitcoin is just a string of characters compared to physical gold, making it impossible to enforce by spying on the personal privacy of every American.

If Americans do not even have the power to hold a string of characters in their hands when it comes to Bitcoin, whose core idea is freedom and individual power, then they must first overthrow the Statue of Liberty. In fact, no matter how much disagreement there is between the Democratic and Republican parties, no one could possibly stand up to overthrow the Statue of Liberty, which symbolizes freedom, democracy, and the American Dream; these core values can be said to be the foundation of the United States.

Conclusion

In the debate, cryptocurrencies like Bitcoin have gained fertile ground and are spiraling upwards. No matter who is ultimately elected, it cannot change the historical wheels rolling forward; it seems that Bitcoin has only a thin layer of paper left to become a reserve asset.