Donald Trump's re-election brings new expectations and apprehensions to the cryptocurrency community as his administration is seen as pro-crypto.
Cryptocurrency and the New Administration
There are strong beliefs that Trump's administration will back the official recognition of cryptocurrencies as a store of value. The appointment of Paul Atkins as SEC chair raises these hopes, as he is more crypto-friendly than his predecessor, Gary Gensler. During his campaign, Trump also mentioned the idea of establishing a national Bitcoin reserve. However, many critics see this promise as a potential scam.
The Dark Side of Cryptocurrency
While the situation looks promising, cryptocurrency has a dark side that few understand. Criminals, including Irish gangsters, Hamas, Russian arms dealers, and North Korean hackers, have already moved billions of dollars through stablecoins like Tether. Trump's victory has greatly influenced Tether's outlook as the world's favored stablecoin. With Tether's growth and Trump in power, risks are arising. Tether's expansion could pose a risk to the financial system in a crisis and create favorable conditions for illicit activities.
Crypto's Future in 2025
Crypto optimists like Aaron Brown have mixed feelings about its future, although he believes that cryptocurrencies will likely go mainstream in 2025. Brown analyzes the journey of cryptos since 2014, when many thought Bitcoin and other altcoins wouldn't survive, and blockchain would remain a niche innovation. By 2025, this new balance might lead to free movement of capital between traditional and crypto economies, enhancing financial inclusion.
Ultimately, the future of cryptocurrency will greatly depend on Trump's administration policies and their ability to integrate digital assets into the existing financial system.
