"Will there suddenly be a major turn in domestic policy one day in the future?"

This is a question left by a reader at the end of an article.

Several years ago, I also wondered whether our country would suddenly make a major turn in its cryptocurrency policy in the coming years.

However, over the years, as my observations have become more careful and in-depth, I feel that this former idea might have been overly naive.

We have all heard the saying: "Science knows no borders." I used to extend this saying to the field of technology, understanding it as technology also having no borders.

But now I believe that technology has clear borders.

In terms of encryption technology, certain inherent functions (such as permissionless, censorship-resistant, and global free flow) are inherently unsuitable for certain types of countries.

In these countries, even if encryption technology can have a period of growth, it is only because its inherent functions have not yet triggered the boundaries; once they do, its growth process will inevitably come to a halt.

Under certain unchanged conditions, hoping for a major reversal in the development of encryption technology in such countries is actually wishful thinking.

If we set aside national sentiments and look purely at the characteristics of encryption technology itself, it seems that only certain countries in the world are truly the most suitable for encryption technology and encrypted assets.

Because in those countries, there has always been a strong vigilance against overly powerful centralized forces since their establishment. It is this force that has formed two types of values:

One type believes that a large government is necessary to lead the country forward;

The other type believes that a small government is fundamental to stimulating creativity among the populace and creating the nation's future.

The interplay of these two value systems has jointly advanced the progress of a country.

What encryption technology precisely needs is the objective environment created by the second type of value system.

Although the second type of value system does not always dominate the country's progress, it always has the opportunity to play a role for a period of time and create a relaxed and free environment during that time.

Once encryption technology encounters such an environment, the opportunity for rapid growth arises. And if a country in such an environment also has a strong financial foundation, a superior market environment, and outstanding technological talent, it would be difficult for that country not to become a global hub for encryption.

In a series of recent announcements by Trump, we can already see some substantial moves regarding his cryptocurrency policy.

For example, there are reports that he may establish a government department specifically responsible for cryptocurrency affairs.

Moreover, whether it is him, his vice president, or already announced cabinet members (such as the Secretary of the Treasury), they all hold a very friendly attitude towards encrypted assets.

I believe that when Trump chose these individuals, he did not necessarily investigate their attitudes towards encryption technology and encrypted assets specifically, but as the saying goes, "birds of a feather flock together," people with common values naturally come together. Because he has such values, the people he naturally chooses will also have similar values.

Therefore, I am increasingly convinced that his cabinet will have noteworthy developments in cryptocurrency policy.

There is also one thing that, although not directly related to Trump, I feel is intricately connected to his upcoming administration:

On November 22, Pennsylvania passed the "Bitcoin Rights Act" by a large majority and subsequently proposed the "Strategic Bitcoin Reserve Act."

If this "Reserve Act" is passed, it means that Pennsylvania will consider Bitcoin as part of its state reserves. With Pennsylvania setting this precedent, I believe more Republican-controlled states may pass similar legislation.

In fact, regardless of whether the federal government will include Bitcoin in its reserves, as long as a significant number of states in the U.S. adopt Bitcoin as a reserve, it will be a significant positive for Bitcoin.

Recently, many media outlets have claimed that Bitcoin's recent surge has already exhausted the favorable conditions that the Trump administration is about to introduce.

I don't see it that way; I still believe that the peak will occur next year, and this round of Bitcoin's peak will not be hastily concluded this year.