Here at PBRG, we’re not generally concerned about politics or election results…
But as we head into this year’s midterm elections, we’ve noticed several politicians owning or turning to crypto as a source of funding… a positive sign for the future of bitcoin and crypto.
For example, in Ohio’s recent primary election, pro-crypto candidates won the Democratic and Republican nominations…
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Democratic nominee Rep. Tim Ryan (D-Ohio) co-sponsored the Keep Innovation in America Act, crypto-friendly legislation that aims to fix crypto-related tax requirements that came out of last November’s infrastructure bill.
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Republican candidate JD Vance, who owns a sizable amount of bitcoin, tweeted that he’s “pro-bitcoin” and is backed by crypto proponent and venture capitalist Peter Thiel.
And venture capitalists (VCs) aren’t the only ones providing millions in financial support to crypto-friendly politicians.
Sam Bankman-Fried, CEO of crypto exchange FTX, is bankrolling a political action committee (PAC) called Protect Our Future. The group has raised about $14 million and is putting its weight behind races in multiple states…
GMI PAC, also funded by FTX executives, plans to spend about $20 million this election cycle…
And there’s HODLpac, a “community-governed, crypto-native political organization” with the goal of representing the interests of crypto investors in Washington, D.C.
According to its website, HODLpac’s mission is to support candidates for Congress who “want to see public blockchain technology and the cryptoeconomy thrive in the United States.”
Look, this is a huge deal…
The crypto community is notoriously distrustful of politicians and the government… And agencies like the Federal Reserve and the Securities and Exchange Commission are the antithesis of a decentralized financial system like crypto.
So the reality is that if crypto wants to thrive and survive, it needs political support. Otherwise, there’s a greater chance of increased federal scrutiny.
Now, you may be thinking, “This is all good news… but the crypto market is taking a beating right now. What motivation is left once these politicians get elected?”
The answer: Greed.
Political Greed Is Good for Crypto
Longtime readers know Daily editor Teeka Tiwari says Wall Street greed is why we’ll see crypto adoption take off… And now we’re seeing crypto greed from politicians.
Here’s Teeka…
The government isn’t looking to kill crypto, they are looking to tax it. And you can’t tax a corpse (death taxes aside, of course).
My point is I expect the long-term greed of politicians to guide their actions [in a way] that allows them to shove their snouts in the crypto feeding trough without destroying it.
Politicians see crypto companies as a way to stimulate job creation in their local economies… crypto transactions as a source of tax revenues… and, increasingly, crypto projects as a personal investment.
Governors like Jared Polis of Colorado and Greg Abbott of Texas have taken steps to make their states more crypto-friendly.
And on a local level, Miami Mayor Francis Suarez is accepting his entire salary in bitcoin… and oversaw the creation of MiamiCoin – a crypto where 30% of mined rewards are paid to the city.
Tampa Mayor Jane Castor followed suit and agreed to accept two paychecks in bitcoin, too.
Senator Cynthia Lummis of Wyoming owns at least five bitcoins.
And Senator Pat Toomey of Pennsylvania owns shares in the Grayscale Bitcoin Trust.
Internationally, we’re also seeing countries like El Salvador experiment with bitcoin.
It made the crypto legal currency in 2021… And its government has made multiple bitcoin purchases, even one this week for roughly $15.5 million.
President Nayib Bukele says he’ll use the bitcoin profits “to build the first 20 schools, fully equipped and modern.”
And El Salvador is no longer alone. Earlier this month, the Central African Republic became the second country to adopt bitcoin as legal tender.
President Faustin-Archange Touadéra said, “this move places the Central African Republic on the map of the world’s boldest and most visionary countries.”
Now, El Salvador and the Central African Republic are small, developing nations. But we believe they’re just the first dominoes to fall…
If these two pioneers succeed, we’ll see other developing nations follow suit.
Emerging markets make up about 41% of global GDP. That’s a huge amount of capital that many experts are ignoring. So this is a potentially huge tailwind for bitcoin.
Look, here’s the thing about crypto…
You don’t need to be a big-time politician, billionaire VC, municipality, or national government to reap its rewards.
And despite the recent plunge in prices… we’ve been here before.
Crypto has fallen 30% or more 12 times since Teeka first recommended bitcoin in 2016… but it’s recovered every time… even going on to hit new all-time highs.
So we expect another recovery just like before… Especially with so many tailwinds behind it.
How to Earn Crypto Income… Even When the Market Is Down
Crypto is down about 43% since the start of the year… and bitcoin has dropped 28% just this month alone.
Luckily, there is a way for you to earn income from crypto, even when the market is down…
Teeka and I believe you’ll see some of the fastest gains in crypto if you invest in the foundational altcoins and companies leading NFT and metaverse development…
That’s because a coming catalyst is about to accelerate the adoption of these projects. And when you combine the explosion of political and Wall Street adoption of crypto with the compounding power of crypto income… the sky’s the limit.
To learn how to get started, click here… you’ll even get a free pick (no strings attached) that could potentially 10x your money when this trend takes off.
(Once you’ve subscribed, you’ll also get immediate access to a portfolio of diverse, actionable investments you can make right now.)
As we get closer to the November midterms, we’ll likely hear more from pro-crypto candidates…
When that happens… and investors on the sidelines wake up to crypto’s inevitable future… it’s only a matter of time before we see new all-time highs and record profits.
Regards,
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Grant Wasylik
Analyst, Palm Beach Daily