There was a time when the mere idea of crypto being in any way involved in politics would have seemed laughable at best. Despite experiencing a rapid evolution, digital currencies have been nowhere near politicians’ radar for most of their existence. When crypto finally made it into the spotlight and came to their attention, the focus mostly fell on negative aspects such as the absence of clear regulations, the extreme price volatility made obvious by the fluctuations in the Bitcoin price USD prediction, and the risks it involves for traders and investors.
Fast forward to today, and crypto is no longer a stranger to the political establishment, but a topic that seems to find its way into the political discourse ever so often and garner almost as much attention as other pressing issues like economic challenges, climate crisis, immigration, healthcare, education, and so on. The general perception of crypto has also changed as most politicians seem to talk about this novel asset class in more positive terms than they did in the past.
If there were any doubts left about crypto’s growing influence in the political scene, this year’s presidential campaign in the US has spelled it loud and clear. Crypto matters more than ever and is here to stay, whether people like it or not.
Crypto’s ascent to political prominence
Bitcoin’s evolution from a little-known innovation to a major political talking point is nothing short of impressive, and this surprising transformation is best demonstrated by the developments that have taken place in the lead-up to the 2024 US Presidential Elections so far. A survey commissioned by Grayscale in November 2023 offers important insights into voters’ views on crypto and the role it plays in the upcoming elections.
According to the survey findings, almost 98% of the 1,759 respondents have heard about Bitcoin, and 17% of them have invested in the asset, while 19% said they held crypto at the time of the poll. People’s increased interest in Bitcoin and crypto at large has been prompted by events like the Bitcoin halving in April and the approval of spot Bitcoin ETF approval in January, coupled with concerns around current geopolitical challenges and rising inflation. At the same time, 73% of interviewees believe that presidential candidates should have a solid understanding of emerging technologies like crypto and AI.
The survey also points out that Bitcoin’s price is significantly higher in 2024 than it was during previous electoral years. The leading coin set a new record of $73,750 last March and was trading at $68,772 at press time, with a market cap of $1,355.34B. This proves that the crypto industry is thriving and continues to evolve at a rapid pace, so much so that the government can no longer treat crypto as a trifling issue.
With crypto prices rising across the board, it comes as no surprise that 32% of surveyed voters would like to boost their knowledge of crypto investments, and 47% plan to include digital currencies in their portfolios at some point in the future. As for crypto ownership rates among voters, it seems like both Republicans and Democrats have a fair share of crypto holdings of 18% respectively 19%, making digital currencies a common issue for both parties.
Another survey from Coinbase and Morning Consult supports the idea of a more vocal and cohesive crypto electorate this year, showing a mixed political make-up of crypto-holding voters with a 22% crypto ownership rate for Democrats, 18% for Republicans, and 22% for Independents.
Survey data also reveals that 60% of the crypto holders who intend to vote are either Gen Z or Millennials, and 41% of them are part of a minority group. While this demographic may not have had a big say in the previous presidential race, they’ll play a much more notable in the 2024 elections and might have the power to influence the outcome of the political battle between Republicans and Democrats.
In preparation for crypto-centric elections
Probably the biggest proof of crypto becoming a major political player that could impact US elections is the candidates’ stance on the matter. Former President Donald Trump, who was once a vocal critic of cryptocurrencies, has now become a supporter of this asset class, disapproving of Biden’s anti-crypto agenda and promising to protect the future of Bitcoin. This has been interpreted as a strategic move from the Republican party to capitalize on the electorate’s mounting interest in crypto.
Not to be left behind, the Biden administration also appears to adopt a softer approach ahead of the elections, after running a harsh crackdown on the crypto industry for years. According to recent reports, President Biden has already initiated discussions with several key stakeholders in the industry.
Trump and Biden are not the only candidates to give an encouraging nod to crypto. Independent presidential candidate Robert F. Kennedy Jr. has also spoken in support of crypto and attended numerous industry events. Although polls show he is not a threat in the presidential battle, his opinions can influence the electorate and attract even more attention to crypto-related topics.
It also needs to be mentioned that crypto’s increasing political significance is not a situation unique to the US. Last year’s presidential elections in Argentina were won by right-wing populist Javier Milei, who has been know for his pro-crypto views. Then there’s also the case of El Salvador where Bitcoin was adopted as a legal tender in 2021.
The fact that crypto has become a major talking point in the US Presidential Elections underscores the growing importance of digital assets in the political sphere. And while this offers no guarantees of more crypto-friendly policies in the future, it does strengthen crypto’s position in the financial sphere and paves the way for wider adoption.
