In current economic, political, and social crisis United States is driving the US dollar price of Bitcoin and other cryptocurrencies while threatening the value of the it’s currency. However, investors willing to hedge their assets with Bitcoins should keep track of the election and surrounding events. Price of Bitcoin and other crypto assets will be definitely affected by the outcome of the elections.
How Toxic Politics, US Dollar and Economy
The United States is in the midst of a social and political crisis that has not been witnessed since the 1960s and early 70s when the Vietnam War and the election of President Richard Nixon in 1968 and 1972 drove the left out of its collective mind. One might even say that this crisis is eerily similar to the one that took place in the 1850s, the decade preceding the American Civil War.
The situation when one crisis is following another is not good for the economy. The stock market may be significantly higher than it was when it was at its late winter lows, but a high stock market does not mean that a nation is economically healthy. In Oeconomicus, Xenophon gives what may be the first definition of an economy as “health of the home”. A Federal Reserve that prints money and seemingly irreconcilable differences between political parties does not indicate a “healthy home”. These signs indicate that the United States is suffering from deep structural problems that could undermine confidence in the US Dollar.
The dollar is valuable because the government says it is. Other than that, it has no intrinsic value. Currently, the US Dollar’s value is largely based on confidence in United States government and economy. Current policies undermine that confidence. Since 2016, Senator Chuck Schumer, Congressman Nancy Pelosi, and various Washington insiders have conspired against President Trump to undermine his administration, going just short of accusing him of treason. Since the Covid-19 pandemic, Fed printed trillions out of thin air. The lockdown and Trump derangement syndrome have resulted in riots, the likes of which have not been seen since 1968.
The money printing does not anyone richer; it debauches the currency. Endless political battles over so-called Russian interference and continuous rioting and agitation erode the people’s confidence in the economy and the nation. When people think the value of their wealth is threatened by bankers, politicians, or street thugs, they will look for alternative ways of guarding the value of their wealth.
Bitcoin/Crypto Forecast After Elections
Cryptocurrency is one of those alternatives. Bitcoin and various altcoins have jumped in value significantly since the beginning of 2020. Bitcoin price has dropped off slightly in September, but the bear market could be temporary. Several scenarios could occur between November and February that could make crypto able to reach new highs or send into deep dive.
If President Trump wins on election night, the Democrats may contest the election. If that happens, it is reasonable to suspect that Antifa, Black Lives Matter, and various left-wing and anarchist groups will go to the streets. There have already been promises by left-wing groups to lay siege to the White House. It is difficult to know whether threats such as these are serious, but if these groups carry them out, and protests are going to continue, expect the value of cryptocurrency (gold and precious metals too) to rise through February.
There is also the possibility that Vice President Biden will win on election night. If this happens, President Trump is more likely than not to concede on election night or the morning after. It is also possible that the lockdowns across the country will be lifted if Vice President Biden wins. The lockdowns are being mostly imposed by democrats Democrat governors as a means of putting political and economic pressure on the president and his supporters. If President Trump loses, the lockdown will no longer be needed since the objective will have been accomplished. In this scenario, I would expect people to start selling-off crypto assets.
What Will the Outcome of the Election mean for digital assets?
No one knows for sure whether now is the time to keep buying. Bloomberg reported that Bitcoin could reach $20,000, but financial writers making predictions about crypto are similar to meteorologists predicting next week’s weather. One might as well consult the augurs of Rome. However, it is safe to say there is a good chance President Trump will be re-elected. Many Americans are unhappy with the antics of the left and will protest by voting rather than taking to the streets. Americans visibly recoiled to the Democrats in 1968 and 1972, whom they associated with the Anti-War Movement, the Sexual Revolution, and the Weather Underground. The “Silent Majority,” as it was then called, gave President Richard Nixon two terms as president as a result, and eight years of presidentship of Ronald Reagan. Americans may do the same in 2020. If this happens, the democrats will be furious and will do as this author earlier said they would. Cryptocurrency will rise in value as a result.
A lot can happen over the next months, crypto holders need to keep a sharp eye on current events. Ultimately, they determine the price of everything, whether it is virtual or tangible. Americans are in for a rocky few months. That being said, everything above is a personal opinion. Do your own research and take trading decisions responsibly. If, like myself, you own Bitcoin – HODL 🙂