July in Tennessee is hot and humid
This land that has witnessed countless changes in American history, the official opening of the Bitcoin2024 conference, which contains the innovative energy of the 21st century.
From the battlefields of the Civil War to the Music City, every inch of this place is filled with a heavy sense of history.
Bitcoin, this 21st century technological wonder, resonates deeply with Tennesseeâs independent spirit.
Unlike previous years, Bitcoin has stepped out from behind the scenes into the spotlight, from a carnival for a small number of people to a battleground for strategists. People no longer seem to care about the price of Bitcoin, but are more concerned about Bitcoin itself.
The decline of the dollar and the rise of Bitcoin
The decline of the dollar
The dollar has long been a symbol of the United States' economic strength, but its strength also comes with a price. The dollar's status as an international reserve currency gives the United States an advantage in global trade, but it also leads to an expansion of dollar demand and an imbalance in the local economy. The coastal elites benefit from this, enjoying the dividends of financial services and global trade, while the manufacturing industry in the central region has been weakened by the strong dollar and the wave of globalization, with factories closing down and unemployment rising. The economic difficulties in the central United States have made life difficult for many families and communities decaying. This economic imbalance has caused many Americans to question the government's economic policies, especially in the central region, and Trump's supporters are particularly concerned about this issue.
Bitcoin as a strategic reserve asset
Against the backdrop of a changing global financial landscape, Bitcoin is emerging as a potential strategic reserve asset. Bitcoinâs decentralization and limited supply (21 million coins) make it an attractive alternative to government-manipulated and inflationary fiat currencies.
The bill proposed by Senator Cynthia Lummis proposes to include Bitcoin in the U.S. strategic reserve assets. This move will not only provide the U.S. government with a tool to hedge the risk of dollar depreciation, but also enhance the U.S. leadership in the global cryptocurrency field. By incorporating Bitcoin into the national reserve, the United States can remain competitive in the global financial market while providing a new type of economic stability.
Germany's Dilemma with China
Germany's recent move to sell Bitcoin has been widely criticized as a strategic mistake. Germany's exchange of Bitcoin for Euros has missed the potential for Bitcoin's value to rise, similar to China's historical mistake of sticking to the silver standard when the world turned to the gold standard in the late 19th century. China at that time lost its competitiveness in international trade due to its adherence to the silver standard, which led to a relative economic decline. German policymakers failed to foresee the potential of Bitcoin as a store of value asset, and this mistake may prove to be a costly decision in the future.
Decentralization of Bitcoin Mining
Although most Bitcoin mining is currently concentrated in Texas, the United States needs to disperse mining activities across the country in order to reduce the risks brought by concentration. Texas has abundant energy resources and low costs, but this centralization also brings policy risks and challenges of grid stability. By dispersing mining activities in different states, the United States can take advantage of renewable energy sources such as wind, solar and hydroelectric power in each state, and improve the energy efficiency and environmental protection level of the entire country. For example, Montana and Wyoming have abundant wind energy resources, while California and Arizona can take advantage of solar energy. This will not only help stabilize the power grid, but also promote local economic development and create new jobs.
Trump: The X factor for Bitcoin's development?
Donald Trumpâs support for Bitcoin mining has sparked widespread controversy. Some people believe that the United States should focus on the decentralization of mining to reduce risks and avoid over-reliance on a single region; others believe that the United States should actively become an important player in the industry and seize the opportunities in this emerging market . Trump was skeptical of Bitcoin during his tenure, but his recent shift in attitude may indicate that he sees the potential benefits of Bitcoin for the U.S. economy and energy policy. If Trump is re-elected as president, his policies could significantly impact the development of Bitcoin in the United States, including pushing for relevant legislation and providing more support.
Bitcoin and Voting
Although single-issue voting is generally discouraged, Bitcoin can be seen as a freedom issue, not just a political issue. Bitcoin represents financial freedom and personal economic autonomy, so it may be a strong reason for voters to support pro-Bitcoin candidates. As Bitcoin and other cryptocurrencies gain popularity around the world, more and more voters want to see a more friendly regulatory environment and policy support. This idea of ââfinancial freedom has attracted a large number of voters who want to break free from the constraints of the traditional financial system, especially among young people and technology enthusiasts.
The role of capital
In recent years, the crypto industry has raised a lot of money to influence politics and lobby for legislation that is favorable to Bitcoin and crypto technology. Although this has raised concerns about black money, the crypto industry's lobbying efforts are still relatively small compared to other industries. However, the flow of these funds has begun to have an impact in the political field, promoting some policy discussions and legislative processes that are favorable to Bitcoin. For example, the crypto industry emphasizes Bitcoin's potential as an engine of financial innovation and economic growth in lobbying, and attempts to change the existing regulatory framework by donating and supporting pro-Bitcoin candidates.
Mass Adoption: When will the next mass adoption of Bitcoin come?
Christian Catalini, Chief Strategy Officer at Lightspark, and Joey Garcia, Director of Public Affairs at Xapo Bank, highlighted the continued impact of Bitcoin and the Lightning Network on retail banking, demonstrating Bitcoinâs ability to seamlessly transfer value around the world. Michael Mitchnick, Head of Digital Assets at BlackRock, presented BlackRockâs strategy to enter the crypto space through Bitcoin and Ethereum ETFs, noting the strong interest of clients in the two major cryptocurrencies.
Michael Saylor, founder of Microstrategy, said at the event that 2024 will be the first year that Bitcoin is adopted by mainstream institutions, and his company currently owns more than 200,000 Bitcoins. Saylor believes that regardless of the future government, the development prospects of Bitcoin will be positive. As an institutional-level digital asset, Bitcoin has occupied an important position in global investment portfolios.
