Two supporters of cryptocurrencies - crypto billionaire Brock Pierce and rapper Kanye West - have announced their intention torun for president of the United States in 2020year. Their victory could contribute to a change in the policy of the country's authorities regarding cryptocurrencies. However, they have little chance of not only winning, but even registering.
Incumbent president donald trump has long beenknown as an adversary of bitcoin. His opponent in the November elections, Democrat Joe Biden, on most issues expresses a diametrically opposite point of view and believes in the power of technology. However, the stock and cryptocurrency markets fear its victory due to uncertainty.
The already difficult struggle for the White Houseexacerbated by the ongoing pandemic and recession, which are also reflected in the crypto industry. How do participants in the current US presidential race relate to cryptocurrencies and why are stock markets getting ready to fall if Biden wins?
Kanye West hopes to equip the presidential administration on the model of Wakanda
Kanye West is an American rapper, producer,entrepreneur and husband of Kim Kardashian. On July 5, he announced his intention to run for the presidency this November as an independent candidate.
This is not the first time that West has announced its intentionrun for president. Back in 2015, he said that he was going to compete for this post in 2020. But last November he specified that he intended to run for office only in 2024. However, it is obvious that the rapper decided - he has a chance of success this year too.
We must now realize the promise of America by trusting God, unifying our vision and building our future. I am running for president of the United States ??! # 2020VISION
- ye (@kanyewest) July 5, 2020
“We must realize the full potential of America. It is possible if we trust God, unite our ideas and build our future together. I'm running for president of the United States. ”- Kanye West announced his nomination.
43-year-old West may well qualify forpresidential chair - it fits all the criteria. But this year he has little chance of being registered. In order for an independent candidate to be on the ballot, he needs to register in every US state. But West has already missed the last few deadlines for registration in six states - so he can not qualify for at least 102 votes of the electoral college of 538. West needs to hurry up so as not to lose another 85 votes - in July the deadlines for participation in voting are running out seven states. In addition, he still has not applied for the nomination of his candidacy to the Federal Election Commission.
West can also register from one ofother US parties. True, no party has yet expressed support for the entrepreneur. Another opportunity to win the election is to convince voters to write their own candidate on the ballot. This is allowed in the USA - sometimes local elections win in the country this way. But on a national scale, there was nothing like this. Also, West needs to hire a staff of volunteers to collect signatures to run for the elections - but the registration deadline expires in August-September.
On July 8, in an interview with Forbes, West revealed detailsof his election campaign. He said he no longer supported Donald Trump, but praised his services and criticized his Democratic opponent Joe Biden.
In case of victory, West promised to turn Whitehome to a government structure similar to the one shown in the fictional country of Wakanda from the Marvel movies. The entrepreneur is going to develop medical innovations, but noted that he considers vaccination against coronavirus “implantation of chips” and opposed abortion. West also hopes to return “fear and love of God” to American schools and government organizations.
The entrepreneur is determined:
“Like everything I've ever done in my life,I am nominating to win ... If I win in 2020, then that was God's appointment. If I win in 2024, then that will be God's appointment. ”- he said in an interview.
West admitted that he does not have a campaign plan yet.apparatus, but he is going to create his own party called “Birthday Party”. Now his advisers are Kim Kardashian and Elon Musk, who publicly supported the rapper. However, on July 8, after the interview, Musk stated that their views were too different. In an interview, West said that he had the coronavirus in February and believes that this will help him solve the problem of missing application deadlines.
In the crypto community it is believed that West issupporter of cryptocurrencies, although he barely mentioned them. In an interview in 2018, he said he didn't like the $20 bill because it depicted Andrew Jackson, the seventh president of the United States and a slave owner. Looking at her, he thought about using Bitcoin. Shortly before the interview, he also tweeted about decentralization.
In any case, there is still a chance for him to win and evenregistration is a bit. Director of the Center for Politics at the University of Virginia Larry Sabato believes that even with a serious election campaign, Kanye West's result in the election would hardly exceed a few percent of the vote, the lead over Trump and Biden would still be large. Most likely, Kanye West or anyone else has already missed the opportunity to have any influence on the course of the presidential race.
Brock Pierce is betting on technology
Brock Pierce is a prominent figure in the crypto world.He is an entrepreneur, venture capitalist, billionaire and co-founder of several dozen companies, including EOS Alliance, Block.one, Blockchain, Tether and Mastercoin.
I, Brock Pierce, am running for President of the United States of America. # 2020 #BROCKTHEVOTE https://t.co/Ede6mABpTP pic.twitter.com/oTAmxuyOdm
- Brock Pierce (@brockpierce) July 5, 2020
"I, Brock Pierce, run for president of the United States of America", - Pierce wrote on Twitter, leaving a link to his election site.
About his decision to run for president inPierce also announced July 5 as an independent candidate. The entrepreneur has not yet presented his own election program. His campaign website features the slogans “Vote for our future,” “Leadership. Experience. Values" and a call to follow him on Twitter, but there are no specific proposals.
“I spent my life creating great things fromnothing, and I can help others do the same. Entrepreneurs are needed to rebuild this country that we love, and I am participating in this race because I know that together we can help build the path to the revival of the America we love so much. ”- said Pierce in a press release.
In his election video, Pierce promised to use technology to improve institutions and living conditions and hinted at cryptocurrencies.
“If our government used the technology of the 21st century, all incentive payments would be received by the needy people much earlier””He said, hinting that the United States Internal Revenue Service (IRS) was faced with the problem of delivering incentive checks to Americans.
“We should adopt technologies, and not be afraid of them .... Technology is a decision that we must actively use. What has served us in the past will not serve us in the future. ”“Said Pierce in a video announcing his nomination.
Pierce's victory would undoubtedly be a celebration for the crypto community - one could hope for significant improvements for the better. But, unfortunately, this is an extremely unlikely outcome.
As with Westom, Pierce missed deadlinesregistrations in a number of states, although he has filed documents with the Federal Election Commission. Therefore, his chances of entering the race are slim. The chances of winning are even slimmer - he is little known to the general electorate. Additionally, in 2000, Pierce was accused by employees of his former company of soliciting sex. Although prosecutors have dropped their lawsuits, voters may decide that there is “no smoke without fire.”
Be that as it may, the crypto community supportedPierce. If Kanye West and Brock Pierce do run for president, Cardano will issue collectible tokens, one for each vote they cast. Project co-founder Charles Hoskinson announced this on July 5.
Trump and Biden on cryptocurrencies
Recall that the presidential election in the United States will be heldin November of this year. Acting President Donald Trump will speak from Republicans, and the most likely candidate from Democrats is Joe Biden. The latter won the race among party members, beating the more radical Bernie Sanders.
In July 2019, Trump stated that he was nota fan of Bitcoin and cryptocurrencies, does not consider them money and is sure that they are useful only in illegal activities. And earlier, in 2018, Trump signed an executive order prohibiting US citizens and companies from buying and using the Venezuelan cryptocurrency Petro.
Moreover, in February of this year the White Housepublished the US government budget, which contains Trump's proposals to strengthen oversight of cryptocurrencies, namely the possibility of giving the Treasury more power over the crypto industry and increasing funding for the US Financial Crimes Enforcement Unit (FinCEN) to combat cryptocurrencies, among other things.
In June of this year, the media published an excerpt from the bookformer National Security Adviser John Bolton, which details how Trump approached Treasury Secretary Mnuchin in May 2018 about regulating Bitcoin.
I am not a fan of Bitcoin and othersCryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate abusive behavior, including drug trade and other illegal activity….
- Donald J. Trump (@realDonaldTrump) July 12, 2019
“I am not a fan of Bitcoin and other cryptocurrencies,which are not money and whose value is highly variable and based on thin air. Unregulated crypto assets can facilitate illegal activities, including drug trafficking and other crimes.”Trump tweeted last year.In the following posts he rebuked the unfounded and projectLibra fromFacebook.
Joe Biden was vice president from 2009 to 2017 under Barack Obama.It seems that until now he has not expressed his attitude to cryptocurrencies in public.But some of his comments and actions may give us clues about what a Biden presidency would mean for the crypto sector.
Biden is known to be a big fan of technology.and innovation - he believes that they are what made America great. Additionally, as an opponent of Trump, he takes opposing positions on most issues with the Republican administration. So it is likely that, once in the presidency, Biden would support the crypto industry to one degree or another. At the very least, the crypto media perceives Biden as more crypto-friendly than Trump.
How the presidential race is affecting the crypto market
In the event of a trump victory, probably the course of the WhiteAt home, relative to cryptocurrencies, it will not change - we will have to wait for more regulation without any relaxation. However, this should not be very frustrating. In the end, it was under Trump that Bitcoin reached its market peaks, and the largest platforms should already be regulated.
The arrival of Biden could turn the course towards less overregulated. The victorious democrat would have to act more loyally to the crypto industry, at least as opposed to Trump's position.
However, according to Wells Fargo analystsSecurities, Biden's victory will negatively affect the price of Bitcoin and the stock market. A favorable tax environment and corporate incentives have contributed to the stock market's growth over the past few years. Biden's policies could worsen the crisis caused by the pandemic due to increased taxes and other changes that could result from a change in the ruling party. Over the past few months, Bitcoin has been closely correlated with the S&P 500 Index, with the two falling and rising together. If the correlation continues and Biden's victory pushes the stock market lower, this could affect the first cryptocurrency as well.
Consider that the influence that any president canrender on the economy and the market depends on its ability to adopt legislation. For Biden to be able to radically change course, he needs control over the House of Representatives and the Senate. So far, Republicans prevail in both houses of parliament and the chances of an increase in the number of Democrats are slim. This could be a significant deterrent to some of Biden’s most radical proposals.
However, JPMorgan analysts believe that victoryBiden, on the contrary, could be a positive development for the stock market. The optimism is based on the belief that the coronavirus will force him to moderate the most radical provisions of his re-election campaign, such as raising corporate taxes. As a result, American businesses will not face new obstacles.
Historically, S&P 500 volatility has typicallygrowing before the elections, and now the situation is worsening due to the uncertainty caused by the COVID-19 pandemic. Markets also tend to react more positively immediately after a Republican president is elected, as the party's policies are generally seen as more favorable to the industry. But this, of course, is not an ironclad rule, and now the pandemic and the onset of the recession are having a much greater impact on the markets.
Finally
We will not go into analysis of the chances of winningTrump and Biden. Judging by the polls, they are almost on par: periodically one of them takes the lead, but neither of them has a decisive advantage yet. At the time of publication of the article, judging by public opinion polls, Biden is ahead of Trump by 8%. But, most likely, the outcome of the vote will be decided at the last moment - in 2020, everything is changing so quickly that predicting autumn events is a futile exercise.
There are some interesting statistics:When the S&P 500 index rises three months before an election, the incumbent party usually wins; when it falls, the incumbent usually loses. Now, after the phenomenal rebound in March, the markets have gone down again.
However, according to other statistics, the currentthe US president is usually re-elected for a second term. But COVID-19, unemployment and rioting due to police brutality against black Americans are clearly playing against Trump.
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