19 Feb Politics and Bitcoin: A financial lifeline?

As the new administration begins implementing its policies, some might argue that it is exposing the financial challenges we face as Americans. As an avid crypto follower, I can’t help but ask: How does politics affect Bitcoin?

With U.S. debt soaring past $34 trillion—and climbing by $1 trillion every 100 days—the reality is clear: this trajectory is unsustainable. Whether the markets crash or politicians in power are forced to implement massive spending cuts that will impact Americans across the board, the question remains: How do we not only survive but also protect and grow our investments?

The Case for Bitcoin as a Hedge

Traditionally, gold has been a go-to safe haven in times of economic uncertainty. Robert Kiyosaki, a well-known investor and author of Rich Dad, Poor Dad, recently revealed that he’s selling some of his silver holdings to move more wealth into Bitcoin. He’s not alone. More successful investors are seeing Bitcoin not just as an asset, but as a hedge against a financial system that appears increasingly fragile.

Looking at Bitcoin’s performance compared to the U.S. dollar, the contrast is striking.

Bitcoin vs. The U.S. Dollar

Bitcoin, the world’s leading cryptocurrency, continues to prove itself as an alternative store of value and a hedge against inflation. Consider its recent performance:

• On March 5, 2024, Bitcoin hit a record $69,000, surpassing its previous all-time high.
• By December 4, 2024, Bitcoin skyrocketed to $103,332.30—a staggering increase in just nine months.

Now, let’s compare that to the U.S. dollar. According to JPMorgan Chase, the dollar surprisingly rose 7% in 2024, even after two Federal Reserve rate cuts. However, inflation remains a persistent issue. By November 2024, overall prices had risen 2.7% year-over-year. But anyone who has been to the grocery store knows the real story—meat prices have surged well beyond that, along with the cost of everyday essentials, building materials, and energy. The dollar may still hold global dominance, but its purchasing power is steadily eroding.

Will Political Solutions Be Enough?

The Trump administration is working to tackle inflation by pursuing energy independence, reducing trade deficits, auditing government departments, and even eliminating some agencies altogether. These are ambitious steps, but will they be enough?

One thing is certain: Bitcoin is proving to be a consistent store of value, and as more politicians and everyday Americans educate themselves on crypto, it’s becoming an investment worth serious consideration.

Is It Time to Convert Cash to Bitcoin?

If you’re considering moving some of your wealth into Bitcoin, it’s important to do your research and find a reliable platform. Bitstop offers convenient locations to facilitate your Bitcoin transactions. Log on to sign up and find a location near you.