Political campaigns

Politicians are turning to crypto to fund their political campaigns

At PBRG, we are generally not concerned with politics or election results…

But as we head into this year’s midterm elections, we have 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 the recent primary elections in Ohio, pro-crypto candidates won the Democratic and Republican nominations…

  • Democratic 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 emerged from last November’s infrastructure bill.

  • Republican candidate JD Vance, who owns a significant amount of bitcoin, tweeted that he was “pro-bitcoin” and was backed by crypto proponent and venture capitalist Peter Thiel.

And venture capitalists (VCs) aren’t the only ones providing millions in financial backing to pro-crypto politicians.

Sam Bankman-Fried, CEO of crypto exchange FTX, funds a political action committee (PAC) called Protect Our Future. The group has raised approximately $14 million and is throwing 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 is HODLpac, a “community-governed crypto-native political organization” with the goal of representing the interests of crypto investors in Washington, DC.

According to its website, HODLpac’s mission is to support congressional candidates who “want to see public blockchain technology and the cryptoeconomy thrive in the United States.”

Listen, this is a big deal…

The crypto community is notoriously suspicious of politicians and 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 is to thrive and survive, it needs political support. Otherwise, there is a greater chance of increased federal control.

Now you might be thinking, “This is all good news…but the crypto market is taking a beating right now. What motivation remains once these politicians are elected? »

The answer: greed.

Political greed is good for crypto

Long-time readers know Daily Editor Teeka Tiwari says Wall Street greed is the reason we will see crypto adoption take off… And now we are seeing crypto greed from politicians.

This is Teeka…

The government is not looking to kill crypto, it is looking to tax it. And you can’t tax a corpse (death taxes aside, of course).

What I mean is that I expect the long-term greed of politicians to guide their actions [in a way] this allows them to poke their snout into the crypto feeder without destroying it.

Politicians see crypto businesses as a way to spur job creation in their local economies…crypto transactions as a source of tax revenue…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 locally, Miami Mayor Francis Suarez accepts his entire salary in bitcoin… and oversaw the creation of MiamiCoin – a crypto where 30% of rewards mined go to the city.

Tampa Mayor Jane Castor followed suit and agreed to accept two bitcoin paychecks as well.

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 also see countries like El Salvador experimenting with bitcoin.

It became the legal cryptocurrency in 2021… And its government made several purchases of bitcoins, even one this week for around $15.5 million.

President Nayib Bukele said he would use bitcoin profits “to build the first 20 fully equipped and modern schools.”

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 decision puts the Central African Republic on the map of the boldest and most visionary countries in the world”.

Today, El Salvador and the Central African Republic are small developing nations. But we think these are just the first dominoes to fall…

If these two pioneers succeed, we will see other developing countries following their example.

Emerging markets represent around 41% of global GDP. That’s a huge amount of capital that many experts ignore. So this is a potentially huge tailwind for bitcoin.

Look, here’s the thing about crypto…

You don’t have to be a top politician, billionaire VC, municipality or national government to reap the rewards.

And despite the recent price drop…we’ve been here before.

The crypto has fallen 30% or more 12 times since Teeka first recommended bitcoin in 2016…but it has rallied each time…it even hit new all-time highs.

We therefore expect another recovery as before… Especially with so many tailwinds behind.

How to Earn Crypto Income…Even When the Market Is Down

The crypto is down around 43% year-to-date…and bitcoin is down 28% 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 will see some of the fastest gains in crypto if you invest in fundamental altcoins and the companies leading NFT and metaverse development…

Indeed, an upcoming catalyst is poised to accelerate the adoption of these projects. And when you combine the explosion of political and Wall Street adoption of crypto with the cumulative power of crypto revenue… the sky is the limit.

To find out how to get started, click here… you’ll even get a free pick (no strings attached) that could potentially 10x your money back when this trend takes off.

(Once you subscribe, you’ll also have immediate access to a diverse and actionable portfolio of investments you can make right now.)

As we get closer to the November midterms, we will likely hear more from pro-crypto candidates…

When that happens…and fringe investors realize the inevitable future of crypto…it’s only a matter of time before we see new all-time highs and record profits.

Cheers,

Grant Wasylik
Analyst, Palm Beach every day