How credible is Trump's Bitcoin conference commitment to "express love" without reservation?

Author: Master of Five Fireballs, Baihua Blockchain

Recently, Trump attended the 2024 Bitcoin Conference as a top guest, delivering a series of "sweet nothings" promises that seemed to express his "love" for Bitcoin almost without reservation in front of a captivated audience. Trump stated that the market value of Bitcoin would surpass that of gold, that he would remove the SEC chairman who is unfriendly to crypto after being elected, and that he would keep government-held Bitcoin as a strategic reserve, among other things. He nearly said, "Let America go ALL in on Bitcoin," and the audience responded with enthusiastic applause. Due to the presence of Trump and others, this conference has become the highest-profile Bitcoin summit in history.

"ETF, SEC, interest rate hikes, elections…" When we find that these focal points, which have a huge impact on the crypto market, are all concentrated in the United States, it is clear that the U.S. has become the dominant force in the crypto market, almost holding the "pricing power" of crypto assets like Bitcoin. The upcoming U.S. elections will have a profound impact on the crypto market, which is why the crypto community has been closely monitoring the dynamics of the U.S. elections recently.

Trump's frequent overtures to crypto assets have led many to believe this is a positive sign, while others think it's just a "performance" to win votes, suggesting that once he becomes president, he might "pull up his pants and leave" or even "burn the bridge after crossing it." So how credible are Trump's sweet nothings? Who is right and who is wrong? Everything must start from the positions and values of the two major camps, the Republican and Democratic parties…

01. Why Does Trump and the Republican Party Favor Bitcoin?

Many believe that in the context of the election year and the opposition between the Republican and Democratic parties: Bitcoin users are being suppressed by a Democratic-led administration, and Trump's overtures are beneficial for garnering more votes and generous donations, laying the groundwork for the upcoming election. This logic is completely understandable, but it raises the question of whether the Republican Party and Trump will "abandon" Bitcoin after winning. There have been many similar historical examples.

In fact, this worry is largely unnecessary; many people only know one side of the story. Another important background is the traditional positions and values of the Republican Party to which Trump belongs.

Simply put, the values of the Republican Party, including Trump, determine their future policy-making direction and major priorities. In fact, the Republican Party and Trump's consistent positions include: support for free markets, economic policies favoring individual freedom, and conservative social views, leaning towards right-wing conservatism to some extent. At the same time, Trump has proposed policies supporting technological innovation, advocating for personal privacy and security, and opposing overly centralized monetary control and financial regulation. Overall, right-leaning individuals may be more inclined to support and engage in technological innovation and market freedom.

It is not hard to see that the core idea of Bitcoin, which returns financial power to individuals, completely aligns with the Republican Party and Trump's values of personal and market freedom. Additionally, Bitcoin, as an emerging technology and investment opportunity they support, is favored and supported even more.

This can also be seen in Elon Musk, who supports Bitcoin's value principles. Musk recently stated in an interview that he is a worshiper of American values. He has historically supported the Democratic Party but now supports the Republican Party, as he is looking for which party better represents the American values he believes in. Currently, the Republican Party aligns more with the principles he admires, avoiding the misuse of DEI (Diversity, Equity, and Inclusion, a typical leftist value), and upholding individual freedom and other fundamental American principles, which is why he now supports the Republican Party.

Of course, Trump's speech at the Bitcoin Conference was still somewhat "cheesy," and his promises are likely to be discounted. After all, the main goal now is to win votes, and when he is truly in a high position, various trade-offs will be necessary, making the implementation of new policies likely to spark debate.

Finally, looking at the muted response of the Bitcoin market after Trump's speech, it is clear that everyone understands that it is not about what he says, but rather what he will actually do.

02. Why Does the Democratic Party Dislike Bitcoin?

As the leading party in the current U.S. government, the actions of the Democratic Party in recent years have been quite evident. Although their attitude has softened as the election approaches, it seems that Democratic leaders, including Biden, the SEC chairman, and current presidential candidate Harris, do not particularly favor Bitcoin.

It remains a matter of values. As previously mentioned by Musk, Democrats clearly hold left-leaning positions and policy proposals, with some even criticizing them as "far-left." The Democratic Party's positions include concerns about environmental impact and sustainability, financial inequality and social justice, and stronger regulations, reflecting a value system that emphasizes public and collective interests over individual freedom and power.

It is evident that under left-leaning values, the core idea of Bitcoin does not harmonize well, which is why the left-leaning Democratic Party, including Biden and Harris, does not particularly favor Bitcoin.

03. Regardless of Who is Elected, the Wheels of History Cannot Be Changed

1) There Are Many Supporters Within the Democratic Party

Although the Democratic Party leans left, not everyone is "far-left." Most people are still rational and focus on the issues at hand. Previously, the Democratic Party clearly stated that they would move towards the center on market and financial regulation issues, distancing themselves from the far-left.

In a previous vote on the anti-crypto accounting policy SAB 121, the Republican-led House passed it with a vote of 228-182, while the Democratic-led Senate passed the resolution with a vote of 60-38. Although it was ultimately vetoed by Biden, this indicates that there are a considerable number of supporters for Bitcoin within the Democratic Party. It is believed that as crypto assets become more internationalized and mainstream, there will be more progress in the future.

2) Core American Values

For many years, people have believed that Bitcoin is one of the main challengers to the dollar's hegemony and should have been blocked long ago. Even if the U.S. cannot completely block it, it has the ability to marginalize it. However, this has not happened, not only due to Bitcoin's inherent anti-fragility but also because one of the underlying reasons is that Americans find it difficult to go against core American values.

Historically, the U.S. once prohibited individuals from holding gold. However, some believed this ban violated the principle of personal freedom and was seen as an infringement on personal liberty and property rights. The repeal of the ban in 1974 was viewed as a restoration of economic freedom and individual rights. Although the ban played a certain role in addressing the Great Depression, in the long run, it was seen by most as a failed policy because it restricted personal freedom and failed to fundamentally resolve economic issues.

Now, Americans understand that it is difficult to prohibit private ownership of Bitcoin in the same way that private ownership of gold was banned back then. One reason is the lesson learned from that failed experience, and another is that Bitcoin, compared to physical gold, is merely a string of characters, making it impossible to enforce such a ban by surveilling every American's personal privacy.

If the core idea of Bitcoin is freedom and individual rights, and Americans cannot even hold a string of characters, then they might as well topple the Statue of Liberty first. In fact, regardless of the disagreements between the Democratic and Republican parties, no one can stand up and advocate for the overthrow of the Statue of Liberty, which symbolizes freedom, democracy, and the American dream. These core values can be said to be the foundation of America's establishment.

04. Conclusion

In the midst of debate, Bitcoin and other crypto assets have found fertile ground for growth, spiraling upward. Regardless of who is elected in the end, the wheels of history will continue to roll forward. Just look, Bitcoin becoming a reserve asset is only a thin layer of paper away…