Blog

Presidential Candidate for 2016 Elections Donald Trump

As Donald Trump campaigns for a potential return to the White House in 2024, his stance on Bitcoin and cryptocurrency has emerged as a significant component of his economic and technological policy. His approach to this rapidly evolving sector is marked by a commitment to positioning the United States as a global leader in cryptocurrency innovation and adoption. Below is an in-depth look at the key elements of Trump's Bitcoin and cryptocurrency policy for the 2024 election.Donald Trump’s policy on cryptocurrency is anchored in a strong pro-Bitcoin stance. He views Bitcoin not just as a digital currency but as a revolutionary technology akin to the transformative power of steel in the industrial era. Trump believes that embracing Bitcoin and other cryptocurrencies is crucial for the U.S. to maintain its leadership in global technological advancements. This vision aligns with his broader "America First" policy, where he seeks to ensure that the U.S. leads in emerging technologies, including artificial intelligence, space exploration, and now, cryptocurrency.In his speeches, Trump has emphasized the importance of Bitcoin and blockchain technology as key drivers of future economic growth. He compares Bitcoin's potential impact on the financial system to the way steel revolutionized industries a century ago, suggesting that Bitcoin could similarly reshape the financial landscape. This comparison highlights his belief that the U.S. must be at the forefront of this technological shift to secure its position as a global economic leader.One of the cornerstone elements of Trump’s cryptocurrency policy is the establishment of a clear regulatory framework. The cryptocurrency space has long been plagued by regulatory uncertainty, which has deterred investment and innovation. Trump plans to address this by creating a Bitcoin and cryptocurrency presidential advisory council. This council would be tasked with developing and implementing consistent regulatory policies that provide clarity for businesses and investors operating in the crypto space.The goal is to eliminate the ambiguity that currently surrounds cryptocurrency regulations in the U.S., making it easier for companies to innovate and grow. By providing clear guidelines, Trump aims to make the U.S. the most attractive destination for crypto-related businesses and to foster a thriving digital asset ecosystem. This approach is designed to boost investor confidence and drive economic growth in the sector, positioning the U.S. as the global leader in cryptocurrency.Trump’s cryptocurrency policy also includes a firm opposition to the development and implementation of central bank digital currencies (CBDCs). He has expressed concerns that CBDCs could pose a significant threat to financial freedom and privacy. Trump argues that government-controlled digital currencies could lead to increased surveillance and control over individual financial transactions, undermining the decentralized nature of cryptocurrencies like Bitcoin.Instead of supporting CBDCs, Trump advocates for the right of individuals to self-custody their digital assets. This stance resonates strongly with the Bitcoin community, which values decentralization, privacy, and individual control over financial assets. Trump’s opposition to CBDCs is part of his broader commitment to preserving personal freedoms and resisting government overreach in the financial sector.At the core of Trump’s Bitcoin and cryptocurrency policy is the belief that fostering innovation in this sector will lead to significant economic benefits for the U.S. He views cryptocurrency as a key component of the next wave of technological innovation, with the potential to create new industries, jobs, and opportunities for economic growth. By positioning the U.S. as a leader in the crypto space, Trump aims to ensure that the country reaps the economic rewards of this emerging technology.Trump’s policy also emphasizes the importance of keeping America competitive on the global stage. As other countries explore and implement their own cryptocurrency regulations, Trump believes that the U.S. must act decisively to lead the way. His plan includes not only regulatory clarity but also support for crypto-related research and development, encouraging entrepreneurship, and ensuring that American companies are at the forefront of cryptocurrency innovation.Donald Trump’s Bitcoin and cryptocurrency policy for the 2024 election reflects a commitment to making the U.S. a global leader in the digital currency space. By advocating for a pro-Bitcoin stance, clear regulatory guidelines, opposition to CBDCs, and the promotion of innovation, Trump aims to create an environment where cryptocurrency can thrive. His policy is rooted in the belief that embracing these emerging technologies is crucial for the U.S. to maintain its leadership in global economic and technological advancements. As the 2024 election approaches, Trump’s stance on Bitcoin and cryptocurrency is likely to be a key issue, particularly among voters who see the potential of digital currencies to reshape the future of finance.

Donald Trump's Bitcoin and Cryptocurrency Policy for the 2024 Election

Exploding colours of dust and powder on a dark background

Volatility in Bitcoin is a feature! Bitcoin's volatility is primarily a reflection of its relatively young and evolving market, which reacts sharply to news, technological developments, and changes in investor sentiment. This characteristic allows for significant price swings that can create substantial profit opportunities for traders and investors. Consider for a moment that Bitcoins price at the start of 2024 was $44K and 8 months later rests around $59K per coin with a high topping $72K. For those willing to embrace the risks, Bitcoin's volatility offers the potential for outsized returns, something that more stable assets like gold or traditional fiat currencies do not typically provide. This feature attracts a certain type of investor—those seeking high-risk, high-reward opportunities—thus fueling Bitcoin's growth and liquidity.Moreover, Bitcoin's volatility plays a critical role in the broader economic conversation around decentralized finance and the future of money. The rapid price movements in Bitcoin capture global attention, driving public and institutional interest in cryptocurrency as an asset class. This ongoing volatility also serves as a testing ground for market mechanisms, such as futures and options contracts, which help to manage and mitigate risk. These financial products are integral to the maturation of the crypto market and its integration into the broader financial system. In this sense, Bitcoin's volatility is not just a byproduct of its current stage of development but a driving force that pushes innovation and expands the boundaries of what is possible in finance.

Why Bitcoin Volatility is Feature - Not a bug

Japan flag with stock market finance, economy trend graph digital technology.

The Japanese yen carry trade, a popular strategy among global investors, involves borrowing yen at low interest rates to invest in higher-yielding assets abroad. For decades, this strategy has fueled significant flows of capital, influencing global markets. However, when the carry trade unwinds—often due to sudden yen appreciation or global financial instability—it can lead to significant market turbulence. Interestingly, the fallout from such events could have long-term benefits for Bitcoin, positioning it as a haven for investors seeking stability and decentralized assets.The yen carry trade thrives on the difference in interest rates between Japan and other countries. Investors borrow yen at minimal costs and invest in assets with higher returns, such as U.S. stocks or emerging market bonds. This strategy can be profitable during periods of low volatility, but it’s highly vulnerable to sudden shifts in market conditions. A rapid yen appreciation or a global financial crisis can force investors to unwind their positions, leading to a massive sell-off in riskier assets and triggering financial instability.When the carry trade unwinds, it often results in significant market disruptions, leading to a flight to safety. Traditionally, this means investors flock to assets like gold, U.S. Treasury bonds, or the yen itself. However, Bitcoin is increasingly seen as an alternative haven during such crises. The fallout from the carry trade highlights the vulnerabilities of the traditional financial system—centralized, heavily reliant on fiat currencies, and susceptible to systemic risks.As investors seek assets that are not tied to any single economy or monetary policy, Bitcoin’s appeal grows. Bitcoin operates on a decentralized network, immune to government interventions or policy shifts that can trigger carry trade unwinds. Moreover, its fixed supply and deflationary nature make it an attractive store of value in times of monetary instability.The recurring cycles of yen carry trade unwinds and the subsequent financial instability underscore the need for a more resilient store of value. Bitcoin, often dubbed "digital gold," fits this role. Its decentralized nature, global accessibility, and growing adoption among institutional investors position it as a long-term beneficiary of the weaknesses exposed by the carry trade.As more investors recognize the risks inherent in traditional financial strategies like the carry trade, Bitcoin could see increased adoption. This shift may be gradual, but each financial shock accelerates the trend, pushing Bitcoin further into the mainstream as a reliable asset in times of crisis.While the fallout from the Japanese carry trade presents challenges for the global financial system, it also highlights the benefits of decentralized, borderless assets like Bitcoin. As traditional markets grapple with systemic risks, Bitcoin stands to gain as a long-term store of value, offering stability in an increasingly uncertain world.

The Japanese carry trade & Bitcoin

modern city skyline and mesh network concept

In August 2024, IoTeX announced a comprehensive update to its tokenomics, aimed at enhancing the utility and value of the IOTX token within its ecosystem. This new tokenomics model aligns with the broader vision of IoTeX 2.0, which emphasizes modularity and interconnected infrastructure.New Tokenomics - Key Elements Burn-to-Certify Mechanism: This mechanism ensures that both human and machine identities are verified and trusted within the IoTeX Network. Device manufacturers will need to burn IOTX tokens to obtain a "Powered by IoTeX" certificate for their devices. This certificate grants access to specific network services and capabilities, such as decentralized warranties and zero gas fees up to a certain limit. The burning process effectively reduces the total supply of IOTX, creating a deflationary effect that can increase the token's value over time. Stake-to-Service Framework: Service providers in the IoTeX ecosystem will be required to stake IOTX tokens to deliver their services. This requirement ensures that providers are committed to maintaining high service levels. Providers that fail to meet their service level agreements (SLAs) will face penalties, including the slashing of their staked tokens. This framework incentivizes high-quality service provision and aligns the interests of service providers with the overall health of the network. Enhanced Governance: IoTeX continues to emphasize decentralized governance. IOTX holders can stake their tokens to participate in network governance by electing delegates and voting on important proposals. This decentralized approach enhances network security and ensures that decisions reflect the community's interests. Emission and Deflation: IoTeX has introduced mechanisms to balance token emission and deflation. While staking rewards generate new tokens, the burn-to-certify mechanism and penalties for service providers contribute to token deflation. This balanced approach aims to maintain a stable token supply and support long-term value appreciation. These changes are designed to support IoTeX's goal of onboarding 100 million devices and unlocking significant real-world value on the blockchain within the next few years. The updated tokenomics model not only incentivizes participation and high service quality but also enhances the overall utility and value of the IOTX token in the IoTeX ecosystem​

Modularity as a Service - The case for IoTeX

Tropical storm Fiona is slow to gather strength east of the Leeward Islands of the Caribbean

Over the past 24 hours, Bitcoin has experienced a sharp decline, echoing some of the most significant market downturns seen in recent years. The price of Bitcoin dropped by approximately 12.6%, reaching around $50,827, and the entire crypto market saw a nearly 12% decrease in value​ (Cryptonews)​​.Key Factors Contributing to the Drop Geopolitical and Economic Uncertainty: Investors are increasingly concerned about a potential recession in the United States, fueled by weak job growth and rising unemployment rates. This economic instability has led to a broader risk-off sentiment across global markets​ (Cryptonews)​​ (Finbold)​. Geopolitical tensions, particularly in the Middle East, have also contributed to market anxiety, causing investors to pull out of riskier assets like cryptocurrencies​ (Cryptonews)​. Government Actions: The U.S. government recently transferred nearly 30,000 BTC from wallets related to the Department of Justice’s Silk Road seizures. This significant move has spooked the market, as it raises concerns about potential sell-offs and market flooding​ (CryptoNews)​. Additionally, the Federal Reserve's decisions and statements have not provided the expected market reassurance, further contributing to the bearish sentiment. The Fed's recent meeting left interest rates unchanged, but this did not alleviate market fears, leading to a sell-off​ (CoinGape)​. Market Dynamics and Technical Indicators: Technical analysis suggests that Bitcoin's price is likely to continue its downward trend in the short term. Indicators such as the Moving Average Convergence Divergence (MACD) and Bollinger Bands (BB) point to potential further declines​ (CryptoNews)​​ (InvestingHaven)​. Bitcoin ETFs have seen significant outflows, with investors pulling out $237 million recently. This large-scale withdrawal indicates a lack of confidence and has added to the downward pressure on Bitcoin’s price​ (Cryptonews)​. Liquidations and Speculative Trading:Over $800 million was liquidated across the crypto market within a short period, exacerbating the sell-off. This high level of liquidation often leads to further declines as positions are forcibly closed​ (Cryptonews)​. Speculative trading activities and the behavior of top traders on major exchanges like Binance also play a role. Despite the drop, many traders are buying the dip, indicating mixed sentiments and high volatility in the market​ (CryptoNews)​. Outlook and Investor Sentiment Despite the current downturn, some analysts remain optimistic about Bitcoin's long-term prospects. Historical trends suggest that Bitcoin could recover if it manages to hold critical support levels and market conditions stabilize. However, the immediate outlook remains cautious, with potential for further declines if current economic and geopolitical uncertainties persist.

'Buy the red- sell the green' - Market Turbulence

black samsung android smartphone on brown wooden table

<h2>Understanding the Fear and Greed Index</h2>The Fear and Greed Index is a tool that helps investors understand the market sentiment around Bitcoin. It measures the emotions and attitudes of the market, providing insights into whether investors feel fearful or greedy. This index can be a valuable resource for anyone involved in cryptocurrency. By analyzing different factors, it provides a snapshot of the current market mood. This can help investors make informed decisions about buying or selling Bitcoin.<figure id="figure-fvakd70raglzfz26ap"><img id="fvakd70raglzfz26ap" src="https://images.unsplash.com/photo-1650959828226-f9d53a7c1f64?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyfHxiaXRjb2luJTIwY2hhcnR8ZW58MHx8fHwxNzIyODAwNzA4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" alt="bitcoin chart" class="object-cover bg-gray-100 " style="aspect-ratio: 16/9;" data-mce-src="https://images.unsplash.com/photo-1650959828226-f9d53a7c1f64?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wyNjI5NjF8MHwxfHNlYXJjaHwyfHxiaXRjb2luJTIwY2hhcnR8ZW58MHx8fHwxNzIyODAwNzA4fDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=1080" data-mce-style="aspect-ratio: 16/9;"></figure><h3>The Importance of Understanding Market Sentiment</h3>Market sentiment can influence Bitcoin prices. When the index shows extreme fear, it might indicate that investors are too worried, creating a buying opportunity. On the other hand, extreme greed might signal that the market is due for a correction.Investors can use the Fear and Greed Index in various ways. For instance, they might decide to buy Bitcoin when the index shows fear, expecting prices to rise once the sentiment shifts. Conversely, they might sell when the index indicates greed, anticipating a price drop.Additionally, the index can help investors time their market entry and exit points. By monitoring changes in sentiment, they can better understand when to enter or exit the market.The index might not always predict short-term price movements. Investors should use it alongside other analysis tools for a more comprehensive view. Moreover, the index mainly reflects the sentiment of retail investors. Institutional investors might have different perspectives, and their actions can also impact the market. Some examples of these may be found here: <a href="https://www.binance.com/en/square/fear-and-greed-index" data-mce-href="https://www.binance.com/en/square/fear-and-greed-index">https://www.binance.com/en/square/fear-and-greed-index</a>&nbsp; <a href="https://www.bitdegree.org/cryptocurrency-prices/fear-and-greed-index" data-mce-href="https://www.bitdegree.org/cryptocurrency-prices/fear-and-greed-index">https://www.bitdegree.org/cryptocurrency-prices/fear-and-greed-index</a>&nbsp; <a href="https://cfgi.io/bitcoin-fear-greed-index/" data-mce-href="https://cfgi.io/bitcoin-fear-greed-index/">https://cfgi.io/bitcoin-fear-greed-index/</a> (NOTE: my personal favorite due to its 15 minute refresh rate) The Fear and Greed Index offers valuable insights into Bitcoin's market sentiment. By understanding and using this tool, investors can make more informed decisions and potentially improve their investment outcomes. However, it is essential that you use the index as part of a broader analysis strategy.

Insights

Donald Trump's Bitcoin and Cryptocurrency Policy for the ...

Why Bitcoin Volatility is Feature - Not a bug

The Japanese carry trade & Bitcoin

Modularity as a Service - The case for IoTeX

'Buy the red- sell the green' - Market Turbulence

Understanding the Current Fear and Greed Index for Bitcoin