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⚡Trump Purchases Burgers with Bitcoin in NYC🌯

Croxroad

20 Sep 2024 — 4 min read

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😋 Trump Buys Burgers with Bitcoin

Republican Party presidential nominee Donald Trump made headlines by becoming the first former U.S. president to use Bitcoin in a transaction during a campaign stop at a New York City bar known for accepting cryptocurrency. According to a Sept. 18 post by Pubkey, Trump used Bitcoin to purchase hamburgers at the bar, marking a significant moment in both his campaign and the broader crypto community. Among those present was BTC advocate and Professional Capital Management CEO Anthony Pompliano, who witnessed the event. Trump even coined the term "crypto burgers" as he handed out the food to attendees, a playful nod to his evolving stance on digital assets.

The event followed closely after Trump’s announcement of a new token launch through the World Liberty Financial crypto platform, operated by members of his family. This is a notable shift from his earlier views, where he famously called Bitcoin a "scam" and described cryptocurrency as being "based on thin air." Now, as part of his 2024 presidential campaign, Trump has spoken at Bitcoin-related events, including the Bitcoin 2024 conference in Nashville, and advocated for Bitcoin miners. Although Pubkey’s team didn’t confirm whether Trump’s transaction was completed using the Lightning Network, the symbolic gesture reflects the growing role of cryptocurrency in political discourse.

Trump's embrace of crypto sets him apart from other candidates, particularly Vice President Kamala Harris, who has yet to make cryptocurrency a focus of her campaign. Although Harris' team has suggested that she would support policies to foster industry growth, she has not distanced herself from the Biden administration’s regulatory approach. As Trump moves forward with his campaign, his newfound support for Bitcoin signals a broader trend of cryptocurrency becoming a talking point in U.S. elections, potentially influencing voters and the future direction of financial policy.

🧭 Bitcoin as a Hedge

BlackRock, the world’s largest asset manager, has stated that Bitcoin doesn't neatly fit into the traditional categories of "risk-on" or "risk-off" assets. Instead, the firm argues that Bitcoin is more appropriately viewed as a form of insurance against a potential U.S. debt crisis. According to a recently released PowerPoint document, BlackRock's clients see Bitcoin as an appealing hedge due to its limited supply, global nature, and ease of cross-border transfer, making it a unique alternative reserve asset. The analysts highlighted Bitcoin’s ability to remain relatively detached from macroeconomic factors affecting other asset classes, such as banking crises and geopolitical disruptions.

The report comes at a time when the U.S. federal debt has ballooned to $35 trillion, leading to rising concerns over the stability of the U.S. dollar. Prominent political figures, including Republican Senator Cynthia Lummis and former President Donald Trump, have suggested using Bitcoin to help mitigate the national debt. Both have recommended that the U.S. create a strategic Bitcoin reserve. The report aligns with the long-standing narrative that Bitcoin serves as an “uncorrelated” asset, offering protection during times of fiscal uncertainty. However, BlackRock noted that despite Bitcoin’s growing institutional interest, it has yet to consistently behave as a safe haven in practice, with its price fluctuations often mirroring Wall Street trends.

Despite this, BlackRock analysts emphasise that Bitcoin’s immaturity as an asset and its liquidity during market panics give it a unique profile. While the asset is still considered risky due to regulatory uncertainty and its emerging status, BlackRock asserts that these risks differ from those associated with traditional asset classes. The firm also cautioned that simplistic views of Bitcoin as purely “risk-on” or “risk-off” miss the nuances of its evolving role in the global financial landscape.

🔂 Bitcoin Mining Process

Bitcoin miners use specialised hardware called ASICs to solve complex cryptographic puzzles, adding blocks to the blockchain in exchange for rewards, currently 12.5 BTC per block. Mining is highly resource-intensive, requiring significant computing power and costs, making it nearly impossible for individuals to mine alone. As a result, miners often collaborate in pools. The difficulty of mining is measured by a metric called "difficulty," which adjusts in response to the network's hashrate—an indicator of the system's computational power—ensuring that blocks are consistently mined every 10 minutes.

🤣 Crox Road Memes

“In the world of Bitcoin, mining is the process that validates and secures transactions, while also issuing new coins. It’s the heart of the network's operation.”

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