Bitcoin is not just an economic phenomenon, but also has a unique influence on the political stage. During the recent US election, the political attributes of Bitcoin have become increasingly noticeable. How does this decentralized currency play a role in the chessboard of power?

Bitcoin and the entanglement of previous US elections

Bitcoin has gradually penetrated from the field of financial investment into political activities. The decentralized nature of Bitcoin makes it a tool for circumventing traditional financial regulation in many political activities.

Looking back at the performance of Bitcoin in successive US elections in recent years, we can gain insight into its application in political fundraising and its political overtones.

During the 2016 election, Bitcoin reached a local low in the third quarter of that year before the election, but its price soared after the election.

Image source: AICion

During the 2020 election, Bitcoin prices reached a record high as political events related to the election changed. In 2020, Bitcoin's market dominance ranged from 56% to 69%. From January to September of that year, Bitcoin prices were lower than other altcoins, but in the last quarter, during the US election, Bitcoin's surge successfully made up for most of the losses and the number of transactions also hit a record high.

Image source: Internet

Bitcoin donations have also become a new way to raise political funds, and many politicians have begun accepting Bitcoin as part of their campaign donations.

Bitcoin’s Impact on Voter Behavior

The cryptocurrency community tends to have higher political participation and they pay more attention to the candidates’ policy attitudes towards cryptocurrency. Obviously, voters who own Bitcoin are more inclined to support candidates who are open to cryptocurrency.

Former US President Trump's support for cryptocurrencies has attracted widespread attention. Although he was relatively conservative about cryptocurrencies during his term, as Bitcoin became more popular and accepted by society, Trump recently publicly expressed his support for cryptocurrencies, a move that attracted the support of a large number of cryptocurrency holders. According to polymarket data, the probability of Trump winning the US election has risen to 63.7%, which must have the support of crypto market players.

Image source: polymarket

This phenomenon is not an isolated case. Many politicians around the world are re-examining their cryptocurrency policies, trying to win more voter support through friendly gestures towards cryptocurrencies. The "political inclinations of Bitcoin holders" are becoming a force that cannot be ignored.

Summarize

Bitcoin is becoming a new political tool, redefining how political funding works. Its role in the US election has demonstrated its potential in economic autonomy and revealed its challenges in political transparency and legitimacy. How the intersection of Bitcoin and politics will evolve is worthy of our continued attention.