With the upcoming 2020 presidential elections, would a democratic takeover be beneficial or harmful for the price and adoption of Bitcoin?
It’s no secret that a rift is developing in the Democratic Party. The old guard is led by Nancy Pelosi and her hardened leadership team, but these wisened stalwarts have been challenged by a host of upstarts like Senator Bernie Sanders and Alexandria Ocasio-Cortez (AOC).
This leftist group of Democrats are marked by fiscal policies that Lenin and Trotsky would have rejoiced over. Calls for wealth redistribution and inflationary policies like massive minimum wage hikes have a strong following among millennials.
Stopping the Bus
Though garnering substantial support among America’s youth, such policies are not particularly helpful economically. Stock and equities markets are based on the relatively free movement of funds and the hope of profits.
Policies designed to strip corporate profits for redistribution often create fear in the market. Investors, knowing that corporations will be unable to gain profit, move funds out of equities and into safe-haven investments.
This movement out of equities can have a massively negative impact on the price of a company’s stock. Suddenly, sellers abound and buyers are few and far between. In the glut of supply, the market drops drastically, resulting in an economic recession.
But the Fed?
Conversely, a more laissez-faire profit-driven system may not be achievable regardless of the party that wins. The Federal Reserve (Fed) has long held the economy of the US in its controlling grasp.
While seemingly better, the control of the current regime is driven not so much by filling the wallets of the proletariat, but by protecting corporate profits. One simply needs to look back to the events surrounding the corporate bailouts in 2008 to see that corporations have their hands deeply in federal pockets.
The Fed has such control at the expense of the wider market. Management of economic structures allows the government to have the ability to turn off and turn on liquidity at will.
Bitcoin by Democrats
Bitcoin (BTC), unlike either of the options above, represents a true change in economics. Providing a currency that is not controlled by the government, Bitcoin offers true financial freedom.
Bitcoin’s current rise is likely driven by investors seeking a place of safety in light of a potential of economic recession. The Fed’s tinkering has left the market deeply concerned about the future.
A victory by the leftist Democratic Party would likely gut the US economy. In such a scenario, investors would flock to a currency or asset that is liberated from redistributionist policies. The demand for Bitcoin would spike, as would the price.
Regardless of where the economy turns from here, Bitcoin’s future looks bright. As American politics continue unfolding, Bitcoin remains a stream unto itself, divested from a society bent on financial slavery.
Do you think Bitcoin would rise should the far-left get elected, or would the reelection of the current regime create a more Bitcoin-friendly environment? Let us know your thoughts in the comments below!
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Editor’s Note: The opinions expressed in this article do not necessarily reflect those of BeInCrypto and its staff.