Both Trump and Musk support digital cryptocurrencies. Trump also has many financial backers from the digital cryptocurrency industry.
Trump's cryptocurrency financiers:
Trump's financial backers include support from tech venture capital magnate Marc Andreessen and investment elite Ben Horowitz. Both Marc Andreessen and Ben Horowitz are also supporters of cryptocurrencies. The cryptocurrency industry has raised $7.5 million in the forms of Bitcoin, Ether, and others to support Trump's presidential campaign. In fact, the largest financial backer of digital cryptocurrencies is Musk. As the founder of Dogecoin, Musk can be considered the biggest financier from the U.S. digital cryptocurrency sector. Trump's vice president, Vance, is a protégé of Peter Thiel. It was Peter Thiel who helped Vance. Peter Thiel is a well-known venture capitalist in the U.S. and also supports digital cryptocurrencies. Peter Thiel and Musk are both founders of electronic payment system PayPal. Each previously held half of PayPal's shares. Later, PayPal was acquired by eBay, and 31-year-old Musk made a profit of $180 million. Musk then invested all that money into his next company, SpaceX. Currently, Peter Thiel also owns 10% of SpaceX. In addition, the cryptocurrency industry has spent over $133 million to support new cryptocurrency legislators, with the vast majority flowing to Republican legislators.
After Trump was stabbed, he began to choose to support and get involved in digital cryptocurrencies before the election. Trump's family joined digital cryptocurrency projects in September before the election, and the decentralized finance project supported by Trump's family, World Liberty Financial (WLF), was already online. The Trump family used Trump's global influence and fame to promote WLF. WLF is a DeFi-type digital cryptocurrency project supported by the Trump family. After Trump took office, he would create a 'game-changing' strategy to use digital cryptocurrencies as national strategic reserves, positioning digital cryptocurrencies as stablecoins for the dollar, thereby ensuring the dollar's dominance. On September 16, Trump revealed the establishment of WLF on social media X. At the WLF launch event, Trump also endorsed it, expressing a positive attitude towards digital cryptocurrencies, and later posted on social media 'FIGHT FIGHT FIGHT' and pinned it to incite community sentiment. Many members of the Trump family hold various roles within the WLF team. Among them, Trump is referred to as the 'Chief Cryptocurrency Advocate', his son Barron Trump is listed as the 'DeFi Visionary' for the project, and Eric Trump and Donald Trump Jr. are both called 'Web3 Ambassadors.'
Meanwhile, Musk purchased $1.5 billion in Bitcoin before Trump took office. He is also the founder of the digital cryptocurrency Dogecoin.
After Trump's victory, digital cryptocurrencies soared!
According to real-time data from Bitstamp, Bitcoin has now surged to an astronomical price of $99,500, just a step away from the $100,000 mark.
Currently, the optimistic price forecast for Bitcoin in the U.S. has reached a target price of $1 million per coin, which is ten times the current price. This is entirely a deliberate hype by the new capital in Silicon Valley!
On November 18, after Trump's election, the significant asset of 'Trump Media Technology Group (DJT)' is in deep negotiations to acquire the cryptocurrency exchange Bakkt, with Trump promising to retain 53% of his stake in the group. If the agreement is reached, it will advance Trump's layout in the cryptocurrency field and expand DJT from a social media platform to a dual-function positioning of social media + cryptocurrency. Furthermore, it indirectly sends a huge signal: Trump will continue to strongly support cryptocurrencies. This layout almost aligns with Musk's long-standing insistence on bundling social media with cryptocurrencies and replacing the dollar trading system with a cryptocurrency system.
On November 6, Musk posted on X platform: 'Radical reforms of the U.S. government are coming, which will end the suffocating bureaucracy.' Musk referred to this potential initiative as the 'Department of Government Efficiency', abbreviated as DOGE. Interestingly, this is also the name of a cryptocurrency he promotes.
On November 22, 2024, Pennsylvania passed the (Bitcoin Rights Bill) by a vote of 176 to 26, officially proposing to classify Bitcoin as a strategic reserve currency. Following the news, Bitcoin's price once again approached $100,000. Behind this is the investment of over $100 million from high-level individuals in the cryptocurrency industry and investors, pushing for pro-cryptocurrency people to enter the U.S. Congress, making this U.S. government the most supportive of Bitcoin. Supporters of Bitcoin believe its decentralized characteristics and fixed supply can combat inflation, while others argue that this is just a facade, with the real aim being to replace the dollar and become the legal currency of the United States.
In fact, Bitcoin is a tool to maintain the dollar's hegemony. Due to the U.S. debt crisis, a large amount of dollars are printed, causing the dollar's credibility to decline. Even if the U.S. hypes AI topics to save the stock market, it still has not found a profitable space, leading to a trend of dollar depreciation. As a result, people are selling dollars to buy gold, causing general gold appreciation. Now the U.S. is hyping Bitcoin, and as Bitcoin rises, it tempts people to sell dollars to buy Bitcoin in large amounts. On one hand, the hype around Bitcoin creates a lack of dollar liquidity, leading to a strong dollar trend. This also coincides with tax cuts, turning overseas assets into cash in the form of dollars to return to the U.S. to buy Bitcoin. Since Bitcoin is priced in dollars, the U.S. wants to classify Bitcoin as a reserve currency. The result of speculating on Bitcoin leads to gold depreciation and a strong dollar trend. On the other hand, excessive dollars due to rising U.S. debt can be stored in Bitcoin as a reservoir for surplus dollars to reduce dollar liquidity, preventing dollar depreciation and inflation. As Bitcoin rises, it reduces people's inclination to buy gold in favor of Bitcoin, causing gold to depreciate and the dollar to appreciate, thus hitting those countries that sell dollars to buy gold. This prevents countries in the Global South, including China, from de-dollarizing, which benefits U.S. Jewish capital in maintaining dollar hegemony through another form of Bitcoin priced in dollars as a reserve currency. This way, it can continue to harvest wealth from other countries in dollars and prevent excessive dollars from imploding within the U.S. Therefore, from a fundamental logic perspective, it can be seen that due to common interests, Trump, Musk, and the Jewish capital controlling the Federal Reserve are essentially in cahoots!
American capital is using the 'Trump supporting Bitcoin' narrative to hype digital cryptocurrencies, leading to a surge in Bitcoin and Dogecoin after Trump's election. It also uses the wealth effect of Bitcoin to prompt Chinese private wealth to flow out to purchase Bitcoin, facilitating the outflow of Chinese wealth and hollowing out the Chinese economy. This equates to the U.S. initiating another wave of using Bitcoin speculation as a tool for Chinese private wealth to escape, indirectly hitting the Chinese stock market and gold prices to prevent China from selling dollars to buy gold, thus de-dollarizing. This is the new financial war of Trump's 2.0 era. In China, virtual assets like Bitcoin are not protected by law. The main reason is that Bitcoin does not serve the real economy, has anti-social and anti-people characteristics, only serves a small number of wealthy holders, thus harming national interests.
