3 Predictions for Crypto and Blockchain Under Trump's Presidency

Donald Trump has reclaimed the presidency with 294 electoral votes, decisively defeating Kamala Harris, who garnered 223 votes. Trump's early victory celebration at his Mar-a-Lago resort punctuated a campaign marked by bold pronouncements and a clear alignment with the burgeoning cryptocurrency sector, with the Web3 community welcoming this change.

Positioning himself as a pro-crypto candidate, Trump even made a notable appearance at the Bitcoin Conference, reinforcing his commitment to financial innovation and decentralised technologies.

Amidst the campaign, Trump's venture into decentralised finance with World Liberty Financial (WLFI) showcased his dedication to the crypto and blockchain realms, despite its rocky debut. He had also set ambitious goals, such as preserving Bitcoin levels in the national reserves and ensuring that all Bitcoin mining occurs domestically under a 'Made in USA' ethos.

Previously regarded as an 'asterisk president', Trump's actions and statements were met with skepticism and scrutiny from the media. Yet, this electoral cycle, American citizens seemed to have chosen Trump with eyes wide open. The question now looms: Will this term diverge from the precedents of the past?

As Trump prepares to navigate his second presidency, let's look at three predictions for the future of crypto, blockchain, and AI.

1. Bitcoin May Finally Break Into the $100K Stratosphere

Bitcoin surged to an all-time high of over $76,000 shortly after Donald Trump defeated Kamala Harris in a tightly contested presidential race. This monumental leap was not limited to Bitcoin alone; Ethereum saw an 11% increase, while meme coins like DOGE, WIF, PEPE, and ELON experienced double-digit gains across the board.

These movements signal renewed public confidence that the new administration will be more amenable to crypto-friendly policies, potentially paving the way for further expansion and increase in value.

Market Experts Weigh in on Bitcoin's Price Direction

The fervor surrounding Bitcoin's recent rally has attracted attention from prominent figures in the financial world. Anthony Scaramucci, Donald Trump’s former communications chief, predicts that Bitcoin could ascend to $170,000. Meanwhile, FX Street projects Bitcoin's current rally to reach $78,955, with Standard Chartered forecasting the cryptocurrency to close 2024 at $125,000.

Adding to this, analysts at Bernstein foresee Bitcoin achieving a high of $90,000 in the near future. These predictions reflect an optimistic outlook for Bitcoin's journey, hinging partly on expectations of relaxed legislative measures to foster a crypto-friendly environment.

Historically speaking, the years following the past three US presidential elections—2012, 2016, and 2020—have seen Bitcoin's price enter a parabolic phase. Although the percentage of returns has diminished across these election cycles, the underlying trend could remain, fueled by potential shifts in government policy that could favorably impact the cryptocurrency market.

As Trump embarks on his second term, investors and stakeholders are keen to observe if this pattern will persist, propelling Bitcoin into uncharted territory beyond the 100K threshold.

2. Blockchain and Web3 May Welcome More Institutional Players

In this new Republican-controlled Senate, we could see Gary Gensler stepping away from his position as the SEC chairman, as Trump stated he would sack him 'on day one'.

Gensler, known for his firm stance on crypto regulations and labeling crypto assets as securities, has overseen numerous lawsuits against the industry. A shift in leadership at the SEC could mean less stringent oversight, potentially fostering a more welcoming environment for blockchain and Web3 innovations.

Capital Gains Tax Removal to Fuel Web3 Expansion

Moreover, Trump's proposal to eliminate capital gains tax on cryptocurrency transactions could be a game-changer for both retail investors and institutional players, catalysing a wave of Web3-related innovations and encouraging Web2 organisations to transition to Web3 technologies.

We may even witness a FOMO-induced rush among traditional Web2 institutions to develop their own Web3 offerings; this would not come as a surprise as they have been quick to embrace AI technologies to remain competitive and relevant. We foresee an increase in the usage of Web3 AI technologies in the near future.

Financial titans such as Visa, PayPal, and Grab have already integrated crypto payments into their business models. Similarly, messaging superapps like Telegram, LINE, and Kakao have launched blockchain platforms, with Telegram's Mini App platform being a leading example. Functioning like a decentralised 'Google Play' store, it offers users a wide range of decentralised applications for everyday use in Telegram, with blockchain technology.

Furthermore, the prospect of more crypto ETFs entering mainstream markets grows increasingly likely. Following the successful launch of Bitcoin and Ethereum ETFs, analysts and enthusiasts are anticipating institutional fund houses to file for Solana and Ripple ETFs.

3. Tech and Blockchain with an AI Focus May Have to Rely on Themselves to Tackle AI Threats

The technological landscape, specifically in tech outfits and blockchains with AI integrations, may face an ambiguous trajectory under Trump's second presidential term.

Trump plans to repeal Biden's executive order on AI, which outlines essential frameworks for AI governance, competition, and addressing AI-related threats. Trump has criticised this order for potentially stifling innovation and free speech in the Web3 AI space, arguing that a more relaxed approach could spur technological advancements, particularly for companies and blockchain initiatives involved with AI.

Opportunities and Challenges in a Looser Regulatory Environment

If Trump's administration succeeds in loosening federal grip on AI, blockchain organisations in the Web3 AI space might enjoy softer regulations akin to that of Trump's stance on cryptocurrencies—a green light for startups and established companies to explore uncharted territories without the shackles of stringent compliance, and promote innovation in the Web3 and AI technologies.

However, the potential for reduced oversight also raises significant concerns. Critics warn that a 'wild, wild West' environment for AI might exacerbate existing issues such as misinformation, disinformation, and digital piracy. Moreover, unchecked AI innovations could lead to critical failures; AI-driven hallucinations could trigger disastrous consequences, particularly in life-sensitive applications like self-driving vehicles.

Despite these challenges, Trump's administration is expected to prioritise strengthening the United States' leadership in AI technology. This move could propel domestic capabilities forward, solidifying the nation's technological preeminence.

Interestingly, Trump has historically been critical of AI and major tech corporations like Meta and Google, citing concerns about their practices. Tesla, led by Trump supporter Elon Musk, has largely escaped this scrutiny, suggesting that alliances within the tech industry may become pivotal during Trump's tenure.

Under this new administration, the balance between fostering innovation and ensuring public safety and ethical standards in AI and blockchain technologies will be tall executive order to tackle.

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*Disclaimer: The information provided on this blog does not constitute investment advice, financial advice, trading advice, or any other form of professional advice. aelf makes no guarantees or warranties about the accuracy, completeness, or timeliness of the information on this blog. You should not make any investment decisions based solely on the information provided on this blog. You should always consult with a qualified financial or legal advisor before making any investment decisions.

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Tool/Platform	What's it about
ChainGPT	An AI-powered assistant for the blockchain and crypto industry, specializing in content creation, language translation, smart contract coding, and more.
aelf	A high-performance, customisable multi-chain blockchain framework with AI-powered smart contracts and a developer-friendly environment.
Quick Intel	An AI-powered crypto security platform that helps investors avoid scams, rug pulls, and honeypots by analysing smart contracts, social sentiment, and on-chain data.
Cogwise AI News Aggregator	An AI-powered news aggregator that analyses real-time news and global trends to predict market movements in the crypto market.
OpenAI Codex	An AI system that transforms natural language into code, automating code creation for smart contracts, blockchain applications, and other development tasks.
QnA3	An AI-powered Web3 knowledge hub that provides real-time information and insights on cryptocurrencies, blockchain projects, and the broader Web3 ecosystem, with unique Solana Actions integrations.
Fetch.ai	A platform that combines AI and blockchain to create autonomous economic agents (AEAs) for various applications, including supply chain optimisation and smart city management.
Octavia	A decentralised digital identity (DID) platform for creating and managing self-sovereign digital identities, empowering users to control their data and online presence.
TensorFlow	A versatile open-source machine learning framework used for building AI models that can analyse blockchain data, enhance security, and predict market trends.
Alethea	A platform that creates 'Intelligent NFTs' (iNFTs) with unique personalities and the ability to engage in conversations, powered by AI and blockchain technology.

Chain	URL	Explorer
AELF	https://aelf-test-node.aelf.io/	https://explorer-test.aelf.io/
tDVW	https://tdvw-test-node.aelf.io/	https://explorer-test-side02.aelf.io/

Feature	Description
Inheritance	ERC-404 inherits from the interfaces IERC-404, IERC721 Receiver, and IERC165, implementing functions specified in these interfaces, behaving as both ERC20 and ERC721.
Data Structures	Mappings track balances, allowances, approvals, and ownership of tokens. Double-ended queue stores ERC721 token IDs. Data for managing ownership and indices of ERC721 tokens.
Constructor	Initialises token name, symbol, decimals, and other necessary variables for ERC20 and ERC721 tokens.
Token Minting and Burning	_mintERC20 function for minting ERC20 tokens. _retrieveOrMintERC721 function for minting ERC721 tokens and retrieving from a bank. _withdrawAndStoreERC721 function for depositing ERC721 tokens into the bank.
Transfers	Functions for transferring ERC20 and ERC271 tokens between addresses. Distinguishes between token types based on ID. _transferERC20WithERC721 function handles transfers involving both types.
ERC20 and ERC721 Interactions	Approve function handles approvals for both token types. Functions like transferFrom, safeTransferFrom, and permit handle transfers and approvals.
EIP-2612 Support	Supports EIP-2612 permit functionality for ERC20 tokens.
Interface Compatibility	Implements necessary functions for ERC-404 and ERC165 interfaces, indicating compatibility with ERC20 and ERC721 standards.

Role	Max Number
BP	2N+1, N starts from 8 in 2022
Candidate node	5*(2N+1)
Voter	No limit

Benefits	Description
Makes smart contracts 'smarter'	AI-driven smart contracts can autonomously modify terms based on predefined conditions and real-time data input, ensuring that the contracts are not just automated but also intelligent and self-improving over time.
Levelled up data analysis	Data is the new oil, and AI is the machinery that refines it. It is possible for AI to reduce large-volume blockchain data analysis time by up to 90%.
Boosts security	Through machine learning models, AI can prevent frauds and detect security threats in real time. It can identify potential breaches, predict future threats, and adapt to evolving security measures.
Lowers carbon footprint	AI algorithms help optimise energy consumption in blockchain operations, given the flak drawn by activities like Bitcoin mining.

3 Predictions for Blockchain, Crypto, and AI Under Trump's Second Presidency Term