During the last couple of months, we’ve seen governments from all around the world becoming more relaxed when it comes down to discussing bitcoin. In fact, on the 1st of April, the Japanese Government finally agreed to recognize Bitcoin as an actual currency, which can be stored, but also used to purchase and sell products and services.
After Donald Trump was officially inaugurated as the President of the United States in January 2017, the digital currency’s price peaked, and hence managed to reach a new high. Two months later, the price of bitcoin reached $1,268, thus surpassing the value of gold for the first time. Not only this, but bitcoin almost tripled in value during a year, and between December and March of this year, its value has grown by around 30%, which is massive growth, even for bitcoin. During its volatility periods, it has been determined that the value of the digital currency can easily react to world and political events, especially in influential countries such as the United States, Russia, China, Japan and more.
During his political campaign, President Trump often stated that he’d rather have a weaker dollar, as this would make it easier for American companies to sell their goods abroad. This statement alone has pushed bitcoin, gold and silver prices up considerably. These events lead us to beg the following question: Would it be possible to see bitcoin recognized as an actual currency, under Trump’s presidency?
So far, Trump has had a positive impact on the digital currency, and a report has mentioned that ‘Emerging market powers eager to move away from being tied to the monetary policy of the US and the banking system as well as to adopt the blockchain as a payment system prove willing adherents as they adjust to zero interest rates and the decrease in systematic risk’.
Numerous reports drafted by economic analysts suggest that if the banking systems in the world’s most powerful countries (the US, Russia and China) would accept Bitcoin as an actual currency, but also as an alternative to the weakening US dollar, then chances are that its price could rise well beyond $2,100 per unit. Regardless of this aspect, there’s still a lot of work that needs to be carried out prior to seeing bitcoin recognized as a currency under Trump’s presidency. For instance, if the SEC would approve the ETF fund, this will encourage investments, and lead to further adoption and popularity of the digital currency.
Based on everything that has been outlined so far, during its lifetime, bitcoin has grown faster and stronger than all other currencies. It’d be no surprise if the reports that place it as the world’s sixth largest currency by 2030 become true.