Trump's election doesn't need to be too excited! Foreign media: His encryption policy is a paradox, which may harm everyone

A week ago, I may not have heard of the Paul brothers, just like you, but everything has changed in the past few days. Now I know that Jake Paul is an American actor, who later became a professional YouTuber and then a popular boxing star. Last week, Netflix livestreamed the match between Jake and 31-year-old Mike Tyson.

As expected, the young man won, but he is obviously a smart person. According to reports, he received a reward of 40 million US dollars, which is twice the amount paid to the asthmatic Tyson.

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At the same time, Jake's brother Logan is a wrestler and wealthy internet celebrity, who is facing scrutiny over his Crypto Assets transactions, with accusations of promoting investments without disclosing returns. It is said that after agreeing to an interview with BBC at a training facility in Puerto Rico, he hired a Logan impersonator to take his place, with a group of supporters booing the BBC.

Both of these brothers are symbols of the era when internet celebrities can earn millions of dollars, but what's more interesting is the role Logan plays in the Crypto Assets frenzy.

Image source: Bitpush News

Currently, the encryption market is booming, and prices continue to soar with support for Trump's victory in the election.

Yesterday, there were reports that Trump Media and Technology Group, founded by Trump three years ago, is about to make an acquisition of Bakkt, a Cryptocurrency trading platform. Some of the main trends of our era - populism, Trump, celebrities and wealthy people amplified by social media - seem to be converging in the trend of encryption, which could affect us all no matter how it develops.

Admitting that you don't really understand BTC or other encrypted currencies is okay. Most of us don't understand, even though we must start taking it more seriously because it is having a disruptive impact, even affecting the thinking of the incoming US government.

Cryptocurrency is essentially an alternative to Central Bank or government issuance or licensed currency. Digital Tokens can be exchanged or stored, and due to encryption, they cannot be copied or stolen. We believe it is completely secure and cannot be hacked.

The Biden administration has cracked down on the wild west of encryption, accusing some industries of violating US law. In contrast, Trump promised to be the "Cryptocurrency President," seemingly with a Cryptocurrency Advisory Committee and a US strategic BTC reserve. Now, with the Republican Party winning big in Congress, the excited Cryptocurrency industry, which supports Trump, is lobbying for open banking systems to allow banks to serve Cryptocurrency companies.

In this excitement, BTC hit a historic high of $94,000 this week, pumping nearly $20,000 since election day.

In the aftermath of the big pump in BTC, thousands of small players hope to ride this wave and soar. Social media is filled with discussions about Token, internet memes, and fear of missing out: 'The essential meme coins for the next encryption Bull Market - grab them before the big pump.'

Image source: Bitpush News

These things are very popular among young people, especially young men.

It's easy to understand why they feel this way when they realize how unfriendly the current economic fundamentals are to this generation.

When these so-called encryption get rich quick schemes are active on the internet, young people are attracted and follow suit. They claim that the existing financial system is manipulated and they have found an alternative solution that will surely make you rich - this is not surprising.

But there is a big paradox in the way Trump sees the Cryptocurrency movement as a business.

Trump only cares about the hegemony of the United States, and its main form of expression is the US dollar. Having the world's reserve currency enables the United States to control the operation of the financial system and sanction governments that make mistakes. This is the real power of the US dollar.

But at the core of the Cryptocurrency movement, apart from all the speculation, there is an assumption that at some point - perhaps before the end of this century - the existing system will collapse.

This view holds that successive governments and the Central Bank have been pump-priming, accumulating massive debts, and the US national debt is about to surpass the threshold of 36 trillion US dollars. Despite Trump's talk of eliminating waste, his reduction measures are just a drop in the bucket compared to massive debts such as defense and interest, and spending during Trump's presidency will increase.

Therefore, the argument of encryption is that by investing your money in Crypto Assets, the US government cannot depreciate or steal it.

Even those who have experienced the terrible aftermath of previous financial bubbles and are deeply skeptical of Crypto Assets can see that at some point, global investors may refuse to fund or purchase the huge US debt and go on strike in an unforeseeable future crisis, which will be the root of all financial crises.

Image source: Bitpush News

Will cryptocurrency enthusiasts, including Trump's company, dominate the new system? What about Americans who hold traditional dollars and not BTC? It is hard to imagine how the collapse of the dollar would align with the concept of 'America First'.

Trump's budget reduction plan includes having Elon Musk take charge of the Department of Government Efficiency, abbreviated as Doge. This name also refers to a meme coin - DOGE, whose creator initially intended it as a joke, although it has since become very mature.

Musk chose the nickname Doge to represent his role in reshaping America, which is the ultimate joke in the tech industry. I hope that we can still laugh about it in ten years.

【Disclaimer】There are risks in the market, and investment should be cautious. This article does not constitute investment advice. Users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Responsibility for investment lies with the individual.

This article is authorized to be reprinted from: 'Foresight News'.

Original author: IAIN MARTIN

"Don't get too excited about Trump's election! Foreign media: his encryption policy is a paradox, which may harm everyone" This article was first published in "encryption city".