Jorn Leogrande, Wirecard
Image by Pierre Metivier
Colloque "Moyens de paiement", Bercy
1er décembre 2014
www.rencontres-competitivite-numerique.com/moyens-de-paie…
The surprising victory of Donald Trump the just concluded election has altered the narrative on the expected winners and losers after the election. Hillary Clinton obviously lost, the democratic establishment lost, the media lost, pundits, commentators, and pollsters lost big time. Interestingly, the emergence of President-elect Trump didn’t lead to a doomsday in stock contrary to expectations that equities will crash if Trump wins.
Of a truth, investors in the equities market panicked in the first few hours after news of Trump’s victory broke. For instance, the Dow Jones lost 3.8% in pre-market trading, NASDAQ was down almost 5%, and the S&P 500 declined by 3%. However, stocks quickly recovered and the Dow closed near record highs.
Victor Alagbe, an analyst at Stern Options opines that “stocks seem to be holding on quite well, at least for now, and the likelihood of a market crash has been postponed until Trump take over the reins of governance.” However, Bitcoin is on track to become the biggest winner from a Trump presidency. To start with, Bitcoin Surged about 4% to reach a new record high of $ 738.33 after news of Trump’s victory broke. This article explores some reasons why a Trump presidency will profit Bitcoin investors.
Bitcoin is an alternative asset
Source: Hedgeable
The first reason Bitcoin investors should prepare to see a surge in its value under a Trump presidency is its status as an alternative asset. An alternative asset is a non-traditional investment that tends to record an increase in value inversely to the stock market. Alternative assets make a good diversification play because they help investors to score gains when the stock market is recording losses.
The more interesting point to note about Bitcoin as an alternative asset is that it is potentially more valuable than other alternative assets such as gold and paintings. Bitcoin is divisible, it is a measure of wealth, and it is acceptable as a legal tender for the exchange of goods and services.
More so, the blockchain technology that backs Bitcoin is gradually coming to prominence. In fact, Aite Group reports that spending to adopt blockchain technology in the capital markets should grow by 52% CAGR to $ 400M by 2019.
Bitcoin is a decentralized currency
The second…
A Trump Presidency Might be Good News for Bitcoin Investors
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