Donald Trump is defeated and therefore tomorrow will be better? The Biden administration will soon see the light of day. It is difficult for the moment to know if it will be cryptophyle, cryptophobic or crypto-ignorant.
Does Biden know about Bitcoin?
Joe biden will soon enter the White House ; difficult to determine the impact of the results of these controversial US presidential elections on the crypto markets, Biden having hardly mentioned the subject during his campaign.
Immediately, Bitcoin (BTC) first fell to $ 14,600 on November 7, 2020 when the results were announced, before rising to $ 15,600 the next day.
For Noelle Acheson who runs the Coindesk Research Department, the fall in the price of BTC would come from the prospect of a stable transition, challenging the theory of chaos – multiple recounts of votes, an economy paralyzed in the absence of stimulus – which would have damaged the dollar and benefited Bitcoin.
Bitcoin would represent the anti-system vote; however, the declaration of Biden as a winner has shown that the system works – and therefore that investors were wrong to use Bitcoin as a cover?
Acheson notes, however, that the theories about the dollar’s devaluation remained “intact”, even though the greenback is currently on hold.
An administration Biden working with a Republican Senate is expected to ease monetary policy, a fact that would benefit limited-supply assets like Bitcoin.
How? ‘Or’ What Biden deal with cryptocurrencies? His 40 years as a senator of Delaware took place before the publication of the white paper Bitcoin through Satoshi Nakamoto.
He had presented almost 30 years ago, 2 bills aimed at prohibiting the encryption of data; on the contrary, it encouraged the development of PGP keys.
We are waiting for the names
The impact of the administration Biden on cryptocurrencies will largely depend on the people they appoint to key positions in the US Treasury.
According to rumors, Lael Brainard who directs the research of the Boston Federal Reserve on the digital dollar, would be one of the first choices of Biden for the Treasury Department.
The Wall Street Journal also indicated that the former chairman of the Commodity futures trading commission (CFTC), Gary Gensler, could be called upon to play a role in the monitoring of Wall Street.
In 2019, Gensler called blockchain technology a “catalyst for change”. The executive director of the Blockchain association, Kristin smith, said few names were released.
She says the ideal scenario would be to have individuals familiar with cryptocurrency in these positions.
According to the partner of the consulting firm FS Vector, John collins, cryptos will not be the priority of the administration Biden, in light of the pressing issues related to economic recovery and covid-19.
Collins stresses that changes in the financial sector are undeniable and that the regulatory framework must follow this dynamic.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
Will Biden save the dollar or sentence it to death? Bitcoin, that dollar vampire, is sure to feed on blood from a hemorrhaging in the greenback.
Litecoin, welcome in the Silver Age