Donald Trump’s incoming presidency could also provide a boon for the assets, which raped the 108K mark in December.
“The expectations of a regime change (user-friendly), not only in the United States, but in the world, given the influence of America in the global financial markets” could support Bitcoin, added a lie. “This change could lead to an increase in institutional capital flows and benefits in Bitcoin, and potentially other cryptocurrencies.”
The possibility that the United States can implement a strategic reserve of one million bitcoins is another potential rear wind, according to the lie. Trump said the allowance would become a “permanent national asset for the benefit of all Americans”, helping to pay the national debt of 36 billions of dollars. The main supporter, republican senator Cynthia Lummis, proposed that the emerging administration buys an additional million BTC, around 5% of the total Bitcoin and the maintenance for at least 20 years.
Urban also believes that the proposed plan could help support Bitcoin. He added that other countries could follow the heels of the United States, providing an additional back wind. “Whether it becomes a reserve or simply part of a (strategy), there will be different gradients that it looks like,” he said. “You can go fully like El Salvador and underly your main motto.
“We have seen other countries moving at the forefront of innovation with Bitcoin while the United States has been Ungard,” he added. Apply their pivots (embracing the use of Bitcoin) or establish their own reserves.
In the end, the potential for additional regulations around cryptographic products like Bitcoin could end up having the most impact.
“It is not as long as Trump buys it or in fact a reserve currency,” said Urban. “If we finally have a clear regulatory framework, this could encourage banks, financial institutions and commercial houses to enter the asset class. And innovators and technological pioneers could continue to build and grow much more than previously.”
