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Cryptocurrency

Bitcoin's Price Soars Post-Trump's Election: What's Next?

2024-11-27

Bitcoin has witnessed an astonishing surge to an all-time price peak, leaving many in the cryptocurrency world wondering about its future trajectory. With Donald Trump's return to the White House on the horizon, advocates of this digital asset hold high hopes for its continued growth.

Unraveling Bitcoin's Future Amid Political Tides

Bitcoin's Price Surge and Its Aftermath

After the price of bitcoin skyrocketed from approximately US$69,000 (£54,000) on November 5th to nearly US$100,000 currently, cryptocurrency enthusiasts are closely observing the next moves in US politics. This significant price jump has not only captured the attention of investors but has also sparked discussions about the potential impact of political decisions on the cryptocurrency market.Bitcoin's value has been on a rollercoaster ride, and its recent ascent to new heights has raised questions about its sustainability. While some believe that the cryptocurrency's growth is driven by fundamental factors such as limited supply and increasing demand, others are cautious about its volatility.

Trump's Crypto Pledge and Its Implications

During his campaign, Donald Trump pledged to make the US the "crypto capital of the planet" and even suggested that the US might pay off its national debt using cryptocurrency. Many of his future cabinet members and inner circle are reportedly pro-crypto, including Robert F. Kennedy Jr., who has stated that he holds "most" of his net worth in bitcoin.This crypto-friendly stance from the Trump administration has had a significant impact on the cryptocurrency market. It has led to increased interest and investment in bitcoin, as well as the introduction of various crypto-related policies and initiatives.For example, Republican Senator Cynthia Lummis of Wyoming has proposed the Bitcoin Act of 2024, which aims to increase the US government's ownership of bitcoin and enhance its supremacy in the geopolitical competition for this asset. In Texas, Dennis Porter, CEO of the Satoshi Act Fund, is in "discussions" to help introduce a bitcoin strategic reserve. Pennsylvania has also passed a new bitcoin "rights bill" and is considering creating a strategic reserve.

Reasons Behind Bitcoin's Bullish Outlook

Aside from political promises, several other factors are contributing to bitcoin's bullish outlook. One of the main reasons is the expectation that the US Federal Reserve will continue to print money to finance the country's growing debt. With the federal debt currently at around US$36 trillion and still increasing, many investors see bitcoin as a hedge against inflation.Since the supply of bitcoin is finite, with only 21 million coins to be mined, it becomes an attractive asset in a situation where the money supply is expanding. As more money flows into this scarce asset, its price is likely to rise.Another factor is the expected regulatory clarity from the Trump administration. While it doesn't necessarily mean more deregulation, a clearer set of rules for trading crypto assets will provide more certainty to investors and encourage greater institutional adoption.For instance, many bitcoiners have been critical of Securities and Exchange Commission (SEC) chairman Gary Gensler, who they believe has been overly restrictive on the crypto industry. However, with Gensler set to step down in January 2024 and a new Trump-appointed SEC chairman likely to be more crypto-friendly, there is hope for a more favorable regulatory environment.Finally, the increased institutional adoption of bitcoin by financial investment advisories and banks is also driving up its price. Earlier this year, the SEC was compelled to approve "spot" bitcoin exchange-traded funds (ETFs), which have made it easier for both corporate and individual investors to access bitcoin. This has led to the entry of major financial players such as Fidelity and BlackRock into the bitcoin space, signaling mainstream acceptance of the cryptocurrency.

The Partisan Divide in Bitcoin

A looming question about bitcoin is whether it remains a partisan issue. While Republicans have generally been more supportive of bitcoin as part of an economic "freedom" agenda, many high-ranking Democrats have been more skeptical.For instance, Massachusetts Senator Elizabeth Warren has been described as leading an "anti-crypocurrency crusade." However, other Democrats like New York Senator Chuck Schumer have sought to reduce federal restrictions on trading crypto assets.Republicans are trying to capitalize on their perceived advantage on this issue. Trump's pick for Treasury Secretary, Scott Bessent, has insisted that the "crypto economy is here to stay."Meanwhile, chief executives of major crypto companies are vying for a seat in Trump's proposed crypto council, which will provide advice on crypto policy.The future of bitcoin remains uncertain, and it remains to be seen whether Trump will truly champion digital assets or disappoint bitcoiners. As the cryptocurrency market continues to evolve, it will be interesting to see how political decisions and market forces interact to shape its future.

The cryptocurrency markets have witnessed a remarkable journey this year. Once plunged into a cold winter during 2022, with the cumulative value of every coin and token in the market falling to just $828 billion from a peak of $3 trillion in 2021, the industry has now emerged in a much stronger position. The total value of all cryptocurrencies in the market now sits at a new record high of $3.5 trillion.

Unraveling the Crypto Conundrum - Which Coin Reigns Supreme?

The Case for Dogecoin

Dogecoin, with a remarkable 362% gain this year, is still trading below its 2021 record high of $0.73. Just two months ago, it was near a 52-week low. However, everything changed when former President Trump won reelection with the help of Tesla CEO Elon Musk. Musk, a vocal advocate of Dogecoin in 2021, regularly promoted it on social media using memes and even participated in a related comedy skit on Saturday Night Live. But unfortunately, the cryptocurrency plunged by 92% after that event as investors realized there was no concrete plan to back up his support.Simply put, Dogecoin's 2021 rally was built on speculation, and this time seems no different. After Trump's election win on Nov. 5, he announced the formation of the Department of Government Efficiency, or D.O.G.E for short, with Musk set to run it. This seems to be a driving force behind Dogecoin's recent surge, although there is no indication that the token will play a role in the new government department. Even if Musk finds a use case for Dogecoin, it may not lead to more upside. Currently, only 2,520 merchants worldwide accept Dogecoin as payment, and many of them are obscure internet companies and online gambling platforms. This lack of utility is a significant hurdle for Dogecoin to create sustainable value for investors.

The Case for Shiba Inu

Shiba Inu rose to fame shortly after Dogecoin and delivered one of the best returns in financial market history in 2021, soaring 45,278,000%. If you invested just $3 in Shiba Inu on Jan. 1, 2021, your position would have been worth over $1 million by Dec. 31. But like Dogecoin, Shiba Inu lost over 90% of its peak value in 2022. Speculative frenzies don't last, and this meme token lacks a prominent figure like Elon Musk to keep investors interested.In 2024, Shiba Inu has gained 146% on the back of improving sentiment across the crypto industry. However, it is still not even halfway to reclaiming its 2021 all-time high. The Shiba Inu community has tried to create new use cases to support its value, such as building a metaverse where investors could spend their Shiba Inu tokens to customize virtual blocks of land. But three years later, the virtual world still hasn't launched. Only 1,032 merchants worldwide accept Shiba Inu as payment, indicating even less real-world utility than Dogecoin. Therefore, it's not surprising if the latest rally eventually fizzles out.

The Case for Bitcoin

Bitcoin is the world's largest cryptocurrency, with a market capitalization of $1.9 trillion, accounting for over half of the crypto industry's total market cap. With a year-to-date gain of 121%, Bitcoin is up less than Dogecoin and Shiba Inu but is actually trading at a record high.Unlike Dogecoin and Shiba Inu, Bitcoin doesn't have widespread acceptance as payment in daily shopping places. However, it has become a reliable store of value, with many experts comparing it to digital gold. The U.S. Securities and Exchange Commission (SEC) has approved dozens of Bitcoin exchange-traded funds (ETFs) this year, providing financial advisors and institutional investors with a regulated way to own the cryptocurrency. The top 10 ETFs alone manage almost $100 billion in client money, and as this number continues to grow, it foreshadows further upside in the price of Bitcoin.The value of above-ground gold reserves worldwide is currently $18 trillion. If the wider investment community truly adopts Bitcoin as a digital alternative to gold, it could imply a price-per-Bitcoin of around $909,000, representing a potential 826% upside from its current trading price. Some Wall Street analysts even think Bitcoin can go even higher in the long run. For example, Cathie Wood's Ark Investment Management believes the price of a single Bitcoin could rise to $1.48 million by 2030 based on eight potential factors, including adoption by institutional investors and becoming digital gold.

The Verdict

All three cryptocurrencies are speculative assets, and investors buy them mainly in the hope of higher prices in the future. However, Bitcoin probably has the best chance to deliver long-term upside. Despite several steep corrections over the last decade, it has always recovered to make new highs, instilling more confidence in investors about its effectiveness as a store of value. On the other hand, Dogecoin and Shiba Inu have not shown the same resilience and are unlikely to win the support of regulators or institutional investors in the future. Therefore, if you are considering buying either of them, proceed with caution.

November 26, 2024 witnessed a remarkable event as INLEO, a leading microblogging social media platform built on the Hive blockchain, joined forces with Dash and Maya Protocol. This partnership holds the potential to revolutionize the way users earn and interact on social media.

Unlock the Power of Earning with INLEO's Blockchain Alliance

Overview of the Partnership

This integration between INLEO, Dash, Hive, and Maya Protocol showcases a harmonious combination of three distinct blockchains. It offers users an unparalleled decentralized social media and earning experience. Now, users can sign up and log in using a Dash wallet, earning Dash for their posts and upvotes. Exclusive paid content subscriptions are also available. The Hive blockchain's creator reward system facilitates this direct earning mechanism, while LeoDEX and Maya Protocol handle the automatic payouts in Dash through a sophisticated token swapping process.

As Khal, the founder and CEO of INLEO, stated, "This integration is a significant step towards our goal of creating a self-sustaining ecosystem where creators are directly rewarded for their contributions without intermediaries."

Enabling Underserved Users to Earn Digital Cash

This partnership redefines the content creation landscape by providing opportunities for creators and users in developing countries and those unbanked or underbanked. Traditionally excluded from mainstream social media and content monetization platforms, they can now earn from the content they create.

Joël Valenzuela, head of marketing and business development for Dash, emphasized, "We've spent a decade building the perfect digital cash to empower users everywhere. The INLEO partnership offers a great way for users to earn Dash and maximize their personal sovereignty."

The Revenue Model

The revenue model leverages Hive's block reward system. Part of the newly minted coins goes to content creators and curators, along with rewards from the platform's native LEO token. Users create various forms of content such as short posts, images, long-form articles, and videos, each earning them rewards. These earnings in Hive Dollars (HBD) and LEO tokens are automatically converted into Dash via LeoDEX, which utilizes the Maya Protocol to directly deposit Dash into users' wallets.

Aaluxx, founder of the Maya Protocol, highlighted, "Our protocol's ability to seamlessly facilitate cross-chain transactions demonstrates its strength in building interconnected financial ecosystems."

Signing Up to INLEO

Users can join INLEO by visiting https://inleo.io/signup. They choose the Keystore option and secure their wallet with a recovery phrase and password. This wallet integration extends its utility across various DeFi applications within the Maya Protocol ecosystem. After selecting the Dash theme, users will automatically receive payouts in Dash directly to their wallet.For more information, please visit INLEO.io or contact:Dash[email protected]MayaX | Discord | Website | Docs###About INLEO: INLEO is a pioneering social media platform on the Hive blockchain, focusing on user-owned content and decentralized monetization.About Dash: Dash is a digital cash system designed for fast, secure, and private transactions and instant access to decentralized data, enhancing financial freedom.About Hive: Hive is a decentralized blockchain designed for storing social, financial, and gaming data, emphasizing user control and community governance at the app layer.About Maya Protocol: Maya Protocol is a decentralized liquidity protocol that enables native swaps across different blockchains, promoting interoperability and user autonomy in the DeFi space.