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Cryptocurrency does not do things quietly, and while still far from mainstream, these currencies always seem to be grabbing headlines and getting media attention. Is it that the people behind them are just great at getting attention, is it that ‘empty vessels make the most noise’, or are they genuinely the future of currency and transactions? Well, of course, that depends on who you listen to.
The ongoing rollercoaster
Bitcoin has seen meteoric rises and dips in its value and fortunes, but over the last year, its price has rocketed. This has been fueled by new Wall Street bitcoin exchange-traded funds. On the downside, for all cryptocurrencies, a US Congress crypto bill could send prices for Bitcoin, Ethereum, XRP and other cryptocurrencies spiralling again. The tussle over who controls currencies seems set to run and run. Elon Musk has claimed that the US dollar will soon be worth nothing, arguing that “stealth money printing” will push cryptocurrencies higher.
So, on the one hand, prices are going up, and on the other, they are crashing. This seems to be the never-ending loop around cryptocurrencies. The world appears to be split into those who believe they are the future and will bring us all untold wealth and freedom and those who are much more skeptical and comfortable with currency being controlled by governments and national institutions. It looks as though it is likely to be an argument that will run and run. Experts are predicting that Bitcoin’s peak valuation is on the horizon.
Mainstream uses
Whatever the value is, there is no denying that cryptocurrency use is breaking through into markets where fiat currencies were the norm, with many online stores and websites allowing customers to pay using crypto. Major corporations across North America that now accept crypto include PayPal, Microsoft, Starbucks, AMC Theatres, Overstock and Newegg. Entertainment platforms Twitch, Gamesplanet, Twitch, Nintendo, Resorts World Las Vegas and a whole host of other online casinos allow for payment with cryptocurrencies. For Canadian players who prefer to play using standard currency, Casino.org recommends the best in Alberta and rounds up the pros and cons of each site.
Jostling for political influence
However, it does seem that there is some serious behind-the-scenes jostling and horse trading going on in the US. The impending US election and Congress Bill are drawing attention from crypto watchers and investors looking to influence outcomes.
According to Public Citizen’s “CryptoBros United” report, crypto lobbyists have raised US$ 102 million to spend on this year’s elections. Rick Claypool, a research director from the consumer advocacy group and author of the report, said
“During the 2022 midterm elections, then-FTX CEO and now-convicted felon Sam Bankman-Fried personified the cryptocurrency sector’s attempt to use campaign spending to maximize its political influence. Now a fresh crop of crypto corporations, execs, and their allies are back in the political fray, spending millions to tilt elections toward pro-crypto candidates and against attempts to hold the industry accountable and ensure it follows the law.”
The report alleges that more than half of the money comes from crypto companies’ corporate expenditures and claims this shows how the crypto sector is taking advantage of unlimited corporate political spending. Coinbase, Ripple, Jump Crypto and Kraken are all cited as having invested. The rest of the ‘war chest’ comes from donations by billionaire venture capitalists and crypto executives. Coinbase’s CEO gets a mention here, as do VC firms Andreessen Horowitz and Winklevoss. Somewhat shockingly, half of the donors have either settled or are facing charges by the US Securities and Exchange Commission (SEC) for allegedly violating securities laws.
The money has been used to create what are known as Super PACS (Political Action Committees), which are tax-exempt organizations that donate towards campaign funds, ballot initiatives or legislation. Of the six 2024 primaries that have taken place in which the crypto super PACS intervened, only one crypto-backed candidate failed to get the nomination. There are eleven more such races to be run, and the crypto backers say they will be spending significant amounts in the battleground states of Ohio and Montana. With such narrow majorities at play, the crypto sector’s influence could tip the balance of power.
Trump ,NFTs and Crypto U-turns
We can not talk about US politics and not mention Donald Trump. He might currently be on trial about hush money payments, but he is not staying quiet. He has been talking up crypto, attacking Biden’s digital assets policy and flogging an NFT of his mugshot to adoring fans. He hosted a dinner for supporters at Mar-a-Lago and guests who had bought a “MugShot Edition” for US$ 99. It was also reported that he was happy to accept crypto campaign donations and had criticized Biden’s administration for attempting to regulate the asset.
In a Twitter post from crypto influencer Frank Degods, the former president can be seen answering in the affirmative when asked if it is possible to donate to the Trump campaign using crypto. Trump claimed that anyone in favour of crypto should vote for him. This appears to be one heck of a U-turn; in 2021, he described large-cap token bitcoin as a scam against the dollar. He had said that he was not a fan of Bitcoin or other cryptocurrencies, claimed they were not money and argued their highly volatile value was based on thin air.
Some followers on Twitter claimed Trump and crypto were perfect partners as each was as volatile and unpredictable as the other.
Crypto Futures
The popularity of cryptocurrencies continues apace and global ownership has lept from 432 million to 580 million in 2023. Canada ranks as the eighth most crypto-friendly country in the world, with high adoption rates and strong engagement with cryptocurrency platforms. Seven percent of the Canadian population holds cryptocurrency. The most crypto-friendly country is Argentina, with the USA at number 2. 15.6% of US citizens are engaged with crypto in some way or another – maybe that is why Trump has changed his tune.
Image by Gerd Altmann from Pixabay
