Nov 19, 2020, 12:01 pm1k pts
With the results of the US elections all but decided, Joe Biden has emerged as a clear winner winning more than 300 seats. While Trump supporters and some sections of the media continue to protest against what they refer to as some irregularities, the writing ins pretty much on the wall.
Most sectors of the economy have kept a keen eye on the developments. The initial speculations of a Hung Assembly and the ensuing volatility have given way to some amount of clarity.
While there is still some time for the air to clear completely, it would be safe to say that decision-makers have arrived at their next course of action.
In this article, we will discuss the expectations that the crypto community would have from the next American President. We will also shed some light on the presidency of Joe Biden and whether it is good news for cryptocurrencies in general and Bitcoins in particular.
3 Reasons why Joe Biden would boost Bitcoin Valuations after becoming President
1. Increased Government Spending-
During his campaign trail, Biden has made it amply clear that he intends to spend on helping people suffering from the effects of the pandemic. This means spending on health infrastructure, unemployment benefits, and financial assistance to small businesses. Money spending amounts to money printing and is likely to be good for Bitcoin as it emerges as a hedge against inflation.
2. Engagement with New Technology-
We all know how the Trump Presidency did not want to engage with Bitcoins or Blockchain technology. This gave other countries, especially China the advantage of engaging, experimenting, and adopting its own digital currency even when the pandemic was raging. Biden is likely to engage with new technologies and give a further boost to Bitcoins.
3. Increased Taxation to Weaken the Stock Markets-
Trump had been unabashedly pro-stocks. With his intention to cut down the taxes of the super-rich, there is an expectation that the stock markets will get a boost after a Trump win. Biden on the other hand has already made his tax plans well known. With increased taxes on the rich, the stock markets are likely to give the hits a miss and force people to look at other assets.
The Handling of the Pandemic by the New President is going to be Important
According to the bitcointrend.app, America was expecting a huge Stimulus Package just after the elections. The aim was to help American citizens, small businesses, and the healthcare system cope with the adverse effects of the pandemic. Biden has strongly fought the elections by basing it on Trump's mismanagement of the crisis.
Whether it would have been a Trump victory or a Biden one, a Stimulus Package is very likely to devalue the dollar significantly. It is also not going to go down too well with the stock markets. In such an event, we can expect a period where Gold and Bitcoins are likely to rise.
This is because investors and normal citizens will start clamouring for security to protect their assets and investments. With Bitcoin showing strong growth, there is no doubt that people will flock to the same.
Biden has already charted out his course of action. This is one major reason why Bitcoin is seeing a grand rise in the past week. With the results coming in, most people expect Biden to start acting in his COVID-19 containment policies.
Short-Term and Long-Term Bitcoin Predictions
In the next few months, the biggest Bitcoin Bulls are optimistic about breaching the $20K levels. In other words, there is a lot of immediate potential for Bitcoin in the near future. When it comes to analyzing long-term growth, experts point out that growth is going to be slow but steady.
This is what is forcing investors to seize the moment and stay in it for the long run. They point out that in the short-term they are likely to get the growth and let their investments mature in the long run. This is a perfect win-win situation for all retail, as well as institutional investors in Bitcoins.
What is more important is that regardless of who would have won the election, experts and big investors predicted that the market corrections would have been beneficial for Bitcoin. The only thing, which they had warned against was uncertainty and a Hung Assembly, fuelling doubts and fear.
The Final Word
Bitcoin is no longer the supporting cast member, which nobody noticed. It is very much the protagonist, which every President needs to engage with and take notice of when they come into the Presidency.