What Will a Trump Presidency Mean for Bitcoins?

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America seems to be an entirely new place after the unlikely election of Donald Trump as its 45th president. Trump came out of nowhere to win the Republican nomination and defeated the very heavily favored Hillary Clinton to become the President of the United States. It was one of the most stunning results of all time, as no one that thought the political neophyte stood any kind of chance to win the presidency, especially after making several highly inflammatory statements that seemed to sink his chances to win.

One of the things that really seemed to draw people to the president-elect is that he is a business man. Americans not only wanted someone new in the White House, sicken by a dysfunctional Washington and wanting to “drain the swamp,” as Trump described, but they also wanted a person in the Oval Office who really understood economics.

This has been one of the primary reasons why people chose to vote for him. They wanted a person who has been a successful business man, who understands what it takes to get a business going, to provide jobs, and run a business so that it is profitable. Americans seem to be tired of watching record deficits on future generations, and seeing the government spend their money like a drunken sailor standing at his or her favorite watering hole.

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The Business World Gets a Boost

The election of Donald Trump may have sent shockwaves through the Democratic Party and through the American political process as a whole, but it has had a booming effect on Wall State. The Dow-Jones Industrial Average is seeing record numbers, and traders and stock analysts believe that he will have an incredibly positive effect on the nation.

The concerns about many have about policies that he will employ have had the opposite effect in the business world, where he is seen as a kind of savior. There is no doubt that analysts see him as a great piece to making the business of America, and inevitably the world business as a whole something that may not have been seen ever.

While most politicians enter the economics portion of their presidency with a theoretical understanding of how businesses work, Trump enters with a great deal of practical understanding. He has run many businesses and, despite seven bankruptcies, many feel that he is the solution to the problem. That America will become much more fundamentally sound economically because there will be a president in office who truly understands the business world. For them, this is a very exciting time.

The World Will Likely See Great Benefits

There is a wide sense of enthusiasm that Donald Trump may be the answer to changing the economic power that China has become. In less than a decade China has moved from a top 25 economic power to second overall. Only the United States does more business and produces more goods than China, but that looks like it may be coming to an end as well. China is continuing to grow, and it will not be long before they are the No. 1 economic power on the planet.

Of course, many are hoping that Trump will change the tide of this. They believe that a guy who understands how to make deals that are beneficial for his organization will translate well in the world/political arena. Their hope is that the same savvy and moxie that he showed to create deals for his business will be employed to improve the deals that the United States has made, thus improving the economic prognosis for the country.

It seems that if Trump is successful in his goals then the entire world will benefit. Much of Europe is struggling as the European Union seems on the verge of collapse under the heavy debt that many countries have incurred. Nations like Greece, Italy, and Romania have fallen so far into debt that they had to take massive loans from the EU to be able to survive. As a result, they have taken on massive payments to make that are stifling the economic growth of these countries. Basically, they are simply treading water at this point instead of drowning in the debt, the forecasts don’t see any high aspirations for these nations. They will, in essence, simply continue to tread water.

A Trump presidency is seen as a possible solution to this problem. It could be possible that if the president can restore some of America’s former luster and remove debt, making it more a solid nation, then Europe and other regions of the world may benefit as well. This is especially what is hoped for in Southeast Asia where many nations worry under the looming power of China.

The Bitcoin Is Seeing Great Success Already

While many areas within the world economic structure are hoping for a growth spurt, one area is already seeing that, and this is the Bitcoin. The bitcoin, which is an internet-based form of currency that can be traded and sold like any other currency, is expected to see rapid increases in value over the next four years, and is actually seeing those increases occurring already.

As Trump gained the Republican nomination, Juniper Research was forecasting that the value of bitcoins and the amount of bitcoins that would be translated would increase by three-fold during the campaign season. It was believed that the policies that Donald Trump wanted to institute would only make the usage of bitcoins increase by more than 300 percent.

Into the first half of last year, the amount of bitcoin usage was increasing, but the value was not. This was a surprise to many speculators who thought the value would rise quickly, but this was not the case. At least not in the first half of the year.

That was actually predicted by the Juniper Research group, which believed that the real value would be seen to increase as the year was coming to an end, especially if Trump were to have won, which he did. They believed that his winning would lead to a rapid value in price.

The Bitcoin Is the Solution to the Wall

There are many who are questioning how Donald Trump being president will really make that much of a difference for the bitcoin. That is a good question whose solution is planted in the roots of one of the president-elect’s most cherished promises.

There was much that Trump was taking a hard line stance about during the campaign, but one of the most important of these was the building of a wall between the United States and Mexico. The president-elect made it clear that the influx of illegal immigrants were not only having a negative impact on the economy of the United States, but it was also leading to a large volume of crime that was committed by those who were in the country illegally. His call to build a wall became a campaign message that many Americans embraced and now that he is elected it is time to deliver on his promise.

During the election he swore that not only would the wall be built but that Mexico would be paying for it. This was strongly rejected by the Mexican president, but Trump continued to push for the idea.

So, is it possible for Trump to get Mexico to pay for the wall, and how do bitcoins fit into this equation? That is an interesting question and is one where bitcoins may be the solution.

The first thing to understand is that the president-elect made it clear during the campaign that trade deals with Mexico and China, such as the North American Free Trade Agreement (NAFTA), would have to be renegotiated or gotten rid of outright. He pointed out that deals like this have had a negative impact on the job market in the United States and have led to companies abandoning the States to go to Mexico, China, or other places where the trade deals made it more beneficial for them to do so.

To resolve the poor trade inequality, one of the primary means to resolve this would be the use of heavy tariffs, something that Trump strongly supported. This would mean that those who looked to pay for items with the Mexican Peso could see heavy fees placed on this currency. Also, those looking to buy goods from Mexico and other places may find a large tax placed on the item, making it so that they are less able to purchase it. Mexico would likely impose a tax like this as well, and soon the currencies would be in a war with one another.

The bitcoin could quickly become the solution to this problem. Instead of being forced to pay with either currency and find additional costs imposed, one would be able to use bitcoins as their source of payment. This would quickly remove the problem and make trade a much more palatable option.

There is also the problem that the EU will face with Great Britain opting to leave the European Union in two years. While the Union was already facing economic challenges because of the instability of the a few of its member nations, the leaving of the group by England only added to the turmoil. This could mean that Britain will likely see a weakening of its economy, which is already occurring in China. The Chinese economy is in a slowdown meaning that currency fluctuations will be a daily nightmare for traders and for those who are looking to do business in several nations.

The bitcoin is the answer to resolving this problem. A currency that has the same value no matter where you live gives businesses and consumers a standard currency in which to use to do business, thus removing any kind of barrier that could hamper trade and consumerism.

It is with factors like this in mind that many believe that the $27 billion that was traded in bitcoin in 2015 will likely reach $92 billion by the end of 2016 and, since the election, this seems to be coming to fruition. What is being seen is that the bitcoin is gaining value against the dollar, making it a much more influential currency for traders to get, because its value is clearly rising.

Are the Expectations Simply Too High?

This is a good question and is one that many are suggesting. They think the pie in the sky approach to bitcoin is a mistake, but let’s just look at what happened after Donald Trump officially became the Republican nominee. Within a week of him reaching the number needed to be the presumptive nominee, the price of bitcoin increased 150 percent to $118.25, according to Bitcoin Investment Trust. That is a serious increase, that has only seen rise since the first part of November.

To this point, many businesses that deal in money transfer are seeing the need to accept and trade with bitcoin. Two of the best examples are Moneygram and Western Union. Both of these groups allow people to send money from any country in the world to another country, allowing the recipient to pick up the comparable amount of money in their country to that which was sent by the originator. With currency fluctuations becoming so rapid and the value of bitcoin on the rise, both of these organizations are accepting the currency as a payment and are giving this to recipients for payment. It clearly shows that this is a real thing that is seeing a huge rise.

Add to it that fact that the amount of bitcoin on the market is being halved in terms of supply available. Whenever you have less of something the demand becomes greater, driving up the value of that item. That is exactly what is happening with the bitcoin. The decreased volume is making it a much more valued commodity, and so it is gaining in strength.

While Donald Trump is not the only factor that is making this currency rise in value, clearly his election is adding to the rise. We are likely to see this continue even more over the next four years.

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