Recently, the global financial market has undergone tremendous changes. As the possibility of Trump being in power grows, his support for Bitcoin has also increased market attention on this cryptocurrency. Not long ago, Bitcoin's market value even surpassed $8.8 trillion.
Now it seems that Bitcoin is developing towards becoming a 'commodity', but what impact will the appreciation momentum of Bitcoin have on the US dollar?
Trump vowed in 2016 to make America the 'greatest country', but now his goal seems to be the whole world rather than just the US.
The 'war' between the US dollar and Bitcoin.
In recent years, the price of Bitcoin has soared dramatically, with its market value once being hyped up to nearly half of the total market value of the US, which has shocked many people.
However, Bitcoin, as a cryptocurrency not controlled by governments or financial institutions, is seen by many as one of the most advanced forms of currency in the world, thus attracting more and more people to invest.
According to a poll released by Trump, about 82% of people believe he should serve as President of the United States again.
After Trump was elected president in 2016, he sold a large amount of Bitcoin and other digital currency assets he held, but now as he campaigns for president again, he vows to incorporate Bitcoin into the official currency standard.
If Trump is elected president, Bitcoin is very likely to become one of the four official currencies of the United States, and it may develop into one of the most important currencies in the global financial market in the future.
After this news broke, the market was instantly ignited, and the price of Bitcoin soared to $30,000, with its market value returning to $1 trillion.
However, this has also left many people wondering why Trump is so enthusiastic about Bitcoin.
The rise of Bitcoin is closely related to Trump's small government philosophy.
This concept advocates minimal interference in people's lives. The US is a market economy country based on free competition.
Although the Federal Reserve has independence in fiscal matters, it is still influenced by government policy developments. Therefore, Trump's unwavering support for the development of cryptocurrency can easily be interpreted as a signal of his policy orientation.
Additionally, Bitcoin reflects Trump's small government philosophy to some extent, as it is a decentralized network asset that does not rely on any government or financial institution.
This aligns with Trump's ideas of free competition and personal freedom.
Although Trump has sold a large amount of Bitcoin he held, it cannot be denied that he is working hard to create greater benefits for himself.
In this situation, what kind of rewards he can obtain is uncertain, but he is likely to be favored by American voters and re-elected as president.
Trump's support for Bitcoin has also won the approval of many people.
In recent years, more and more people believe that the problems of the existing financial system need reform, and Bitcoin, as a new form of currency, can offer a more decentralized and secure trading method.
However, there is still great uncertainty as to whether Bitcoin can replace the US dollar as the most liquid currency in the world.
Despite Bitcoin's continuous price rise, it still faces challenges in technology and practicality.
Firstly, Bitcoin, as a 'virtual currency', cannot be widely used in daily consumption, which prevents it from becoming a public trading medium like the US dollar.
Secondly, Bitcoin requires mining and verification during transactions, which consumes a lot of computing power and electricity resources, which is not good news for global energy supply.
Finally, as a decentralized network asset, Bitcoin still faces risks such as hacking and loss, which makes its security uncertain.
US dollar liquidity crisis.
In recent years, Bitcoin's market value has even surpassed $8.8 trillion, a shocking figure equivalent to half of the total market value of the US, indicating that many investors have turned their assets towards Bitcoin, a digital currency.
Some analysts express concern about this, believing that Bitcoin may enter a more frenzied development phase in the future. Once many investors pull their assets out of Bitcoin, the US may fall into a liquidity crisis.
However, some large companies are not worried about this. These large companies have even started to convert cash into Bitcoin to avoid losses in the future.
From this point of view, the crisis faced by the US is still relatively significant. Should the US take measures to curb the excessive expansion of Bitcoin?
There is also controversy over this issue within the US, and there is currently no clear conclusion.
In fact, decades ago, the US Congress enacted some corresponding policies to regulate cryptocurrencies, but due to their short development time, they did not consider more detailed issues.
In this situation, the US needs to reassess its cryptocurrency policies to ensure they can adapt to the new market environment.
If the US imposes strict restrictions on cryptocurrency, those funds may turn to other countries that support cryptocurrency trading platforms. However, the US may not be able to restrict its citizens from investing in cryptocurrency through legislative means.
According to survey results, about 60% of the American public said they are willing to hold Bitcoin or other cryptocurrency assets, with only 7% explicitly rejecting this idea.
Although some high-ranking officials and economists express concerns about this phenomenon, believing it may lead to the US losing its original credit, many others believe this is just a reaction to the current situation. They believe that as long as the US economy remains stable and the government takes effective measures, the previous trend can be restored.
However, Trump is not the only one concerned with cryptocurrency; Silicon Valley's new star Musk is also famous for buying large amounts of Bitcoin. Recently, he released a vague message, but Musk stated that he had no malicious intent.
If both Trump and Musk profit from this 'war', where will other participants go?
Is fiat currency better or digital currency better? This may depend on the actual situation. If the two can form some kind of balance, allowing everyone to benefit, then either side is okay.
How should we make this judgment?
Will Bitcoin become a mainstream currency?
If Trump is elected president and brings new economic policies to the US, he is likely to promote these policies globally, resulting in countries around the world starting to imitate the US, which could distort the global financial structure and even change the global economic trend.
Although Bitcoin is not yet a mainstream legal currency, it can still be regarded as a special existence. The phenomenon of cryptocurrency has already been highlighted, and its status has become increasingly significant—surpassing many countries' legal currencies and even traditional investment assets.
"New financial order" slogan was created to adapt to the current market performance, but whether this label is standardized still needs further consideration, depending on whether it can remain stable.
The new financial order means we must consider the future more to adapt to the constantly changing new situation.
If this new order continues to exist and gradually gains recognition, it can bring stability and predictability to the currently turbulent financial market, and also better prepare us to face new challenges and opportunities that may arise in the future.
So the question arises: if the structure of cryptocurrency has changed, will Bitcoin become the ultimate winner?
Currently, Bitcoin has already gained a certain level of strength and influence, attracting the attention and participation of a large number of global investors.
However, the cryptocurrency market is highly competitive. Besides Bitcoin, there are many other virtual currencies such as Ethereum and Ripple, which also have certain development potential and market share.
Thus, whether Bitcoin can ultimately become the winner still needs to be observed based on its performance and advantages in the future market, while also considering the developments of other competitors.
However, in a market where the price of Bitcoin keeps rising, it has now reached $30,000, and its market value is equivalent to half of the total market value of the US, with funds continuously pouring in, leading to insufficient deposits, most of which are invested in digital currency.
If there is not enough cash circulation, it will fall into crisis. Perhaps this crisis has not yet engulfed the US mainland, but as funds continue to flow out, like capital fleeing the country, this crisis will affect the whole world.
This ultimately leads to a liquidity crisis for the US dollar, which will also affect the US real economy, making citizens poorer and decreasing their standard of living. If this issue is not effectively resolved, it could trigger a major economic crisis, otherwise it will be buried like a seed in the heart, waiting for the right moment to erupt.
In fact, whether it's the US dollar or Bitcoin, both have their advantages. When the two are combined, the best effects can be achieved, reaching a relative balance so that everyone can make money. Therefore, finding the best path to walk down will lead to a bright future and success.#英伟达财报即将公布
