Bitcoin Rises as Key Solution for Middle-Class Amid Dollar Decline in 2024 Election

America is navigating a declining dollar while considering an asset that could tackle many financial challenges facing the squeezed middle class.

Source: webrazzi.com

Bitcoin first emerged over three election cycles ago, yet the 2024 United States presidential election marks the first time it and cryptocurrency in general has gained significant attention as a key election issue. Advocates of Satoshi Nakamoto’s vision have evolved into a powerful group of single-issue voters, passionately supporting the cause despite recent challenges like the bear market and the downfall of prominent crypto exchange FTX. However, the tide seems to be shifting, with Bitcoin prices stabilizing and institutions like BlackRock, the largest asset manager globally, asserting that Bitcoin represents this generation's store of value. As the election campaign intensifies, the critical question remains: what role will this modern currency play in shaping the future of the world’s largest economy?

The Federal Reserve reports that only 3% of the dollar's original purchasing power remains in 2024, prompting many developing nations to explore alternatives for trade. Concerns persist that current monetary policies aimed at preventing recession may inadvertently trigger hyperinflation and economic decline. The economy has swung between phases of rapid growth, fueled by loose monetary policies, and the brink of collapse, worsened by a looming debt crisis. Additionally, escalating geopolitical tensions have further contributed to this instability.

This volatility has exacerbated the growing wealth gap, with an increasingly affluent upper class and a shrinking middle class. Since its inception, Bitcoin has been viewed by many as a potential safeguard against economic uncertainty for the middle class. It holds the promise of being an inflation-resistant asset that could provide financial independence to those feeling the squeeze, even as the dollar remains the backbone of the global economy. While the dollar continues to command the trust of many retail investors, its purchasing power diminishes. Today, America finds itself in an unprecedented situation: a weakening dollar juxtaposed against an asset that could potentially solve many pressing financial issues for the struggling middle class. How this dynamic is addressed and discussed will significantly influence the landscape of the world’s leading economy over the next 25 years. In light of this context, here are several bold predictions regarding how this year’s election will shape the future of Bitcoin and digital assets in the United States.

SEC Chairman Gary Gensler Could Be Out No Matter The Election Outcome

Securities and Exchange Commission Chairman Gary Gensler hasn't gained many allies in the crypto community since assuming his role. Although he has achieved some significant victories, his regulation by enforcement strategy has faced setbacks in court. Former President Donald Trump has vowed to fire Gensler if elected, though this has rarely occurred in the past. Typically, SEC chairs resign when there's a change in the White House. Should Vice President Kamala Harris win, it wouldn’t be surprising if her administration adopts a similar approach to her opponent in an effort to win favor with the industry. Change is on the horizon.

Trump To Unveil Formal Plan For Bitcoin And Digital Assets Before Election

While Harris has remained mostly silent on digital assets during her campaign, only mentioning them briefly alongside other emerging technologies, Trump has actively sought the crypto vote. He made history as the first sitting president to attend the 2024 Bitcoin Nashville event this summer, where he asserted that the future of Bitcoin would be in the U.S. and promised to keep Elizabeth Warren and her goons away from your Bitcoin. Additionally, he has launched his own DeFi project, World Liberty Financial. If formal policy recommendations regarding cryptocurrencies and digital assets emerge ahead of the election, they are likely to come from the Trump campaign.

Change typically unfolds more slowly and unpredictably than anticipated, and Bitcoin is no exception. The mission and message behind Bitcoin represent one of the most powerful signals of liberation in recent centuries. However, the institutions that currently hold power are those most at risk if the fundamental principles of Bitcoin and cryptocurrencies are fully realized.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.