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.
*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.
About aelf
aelf, an AI-enhanced Layer 1 blockchain network, leverages the robust C# programming language for efficiency and scalability across its sophisticated multi-layered architecture. Founded in 2017 with its global hub in Singapore, aelf is a pioneer in the industry, leading Asia in evolving blockchain with state-of-the-art AI integration to ensure an efficient, low-cost, and highly secure platform that is both developer and end-user friendly. Aligned with its progressive vision, aelf is committed to fostering innovation within its ecosystem and advancing Web3 and AI technology adoption.
For more information about aelf, please refer to our Whitepaper V2.0.
Find out more about aelf and stay connected with our community:
Website | X | Telegram | Discord
