Silver was for a long time dominating the financial world before it was replaced by gold, then the US dollar, which remains the master of the global financial system to this day, but there are those who say that the future will belong to cryptocurrencies.
On the other hand, a large sector says that these new currencies are nothing but an advanced method of fraud, to the point that they have become one of the main issues addressed by the current US presidential elections.
According to the program “searchlight“, the difference between regular currencies and their counterparts encrypted It lies in the fact that the former was subject for about 100 years to what is known as the “gold rule,” which determines the strength of each currency according to the amount of gold the country possesses in exchange for it, before the dollar replaced gold as a global reserve in accordance with the “Bretton Woods” agreement.
It was the agreement that I signed US With Western European countries, Washington is obligated to exchange dollars for gold for any country, which means that it must own a specific amount of gold for every dollar it prints.
From the dollar to crypto
But former President Richard Nixon allowed the government to print the dollar to finance the Vietnam War in the 1960s, making the power of the United States the sole guarantor of the dollar, and since then the era of paper currencies not backed by a gold cover has emerged.
After American financial institutions and banks were exposed to a liquidity crisis, an unknown man launched what is called “Bitcoin“The author of this revolution in the world of finance was later known as Satoshi Nakamoto.
The digital currency “Crypto” is traded directly between parties without the need for banks, as all transactions are recorded in “blocks” known as “blockchains”.
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While some of the world’s wealthy people, such as American stock billionaire Warren Buffett and Bill Gates, founder of Microsoft, say that encrypted money is nothing but a type of fraud or a broad gamble, at best.
However, these currencies are spreading and their market is expanding, as the price of one Bitcoin has risen from one dollar in 2011 to more than 62 thousand dollars at the present time.
What makes Bitcoin in great demand is that it is not available without limit, but rather is limited to 19.5 million units circulating around the world whose value currently exceeds $1.2 trillion, or $2.4 trillion if the rest of the other digital currencies that appeared later are added to it.
Despite this huge amount of money controlled by the crypto market, many people around the world do not accept it. In the United States, for example, owners of digital wallets do not exceed 7% of the population, of whom only 1% use them for real payments.
Crypto and politics
Accordingly, many believe that the major conflict surrounding these currencies stems from the skepticism of politicians and major financial men about their seriousness. Donald Trump When he was president of the United States, he described this money as “fraud, not money.” He also considered it a means of drug trafficking, and warned of its dangers to the American financial system, which he said “has no currency other than the dollar.”
It also witnessed a period of rule joe biden 80 cases were filed against crypto companies on charges of selling securities not registered on stock exchanges. Then disaster struck when cryptocurrency exchange FTX lost $8 billion.
The crypto giant Coinbase was quick to seek the help of the famous American lawyer Chris Lehane, whom the New York Times described as a “master of the dark political arts.” The man founded an organization to support these currencies whose mission was to “classify legislators according to their positions on crypto.”
Then, a political action committee called “Verschack” was established to raise money and spend it on the elections, and the first step was to remove California Democratic Representative Katie Porter from the party’s nominations for the Senate and replace her with Representative Adam Schiff.
Porter has been staunchly anti-crypto, while Schiff has been a staunch supporter of it, and Verchack has spent $10 million on advertising campaigns against Porter, whom she calls a liar and a bully.
When the committee succeeded in ousting the Florida representative, it decided to spend $40 million to oust Representative Sherrod Brown in the state of Ohio, and so on in a number of states.
Verchack raised more than $200 million this year, spending more than $130 million to influence 42 primary races, and she was successful in 85% of them.
Everyone retreats in front of Verczak
After these successes, the recent “Bitcoin” conference witnessed the attendance of 10 US representatives and 8 members of the… SenateBut the most important guest at this conference was Republican presidential candidate and former arch-enemy of crypto Donald Trump.
Thus, Trump, who described Bitcoin as the “currency of the drug trade,” became one of the staunchest supporters of this market and owns $6.6 million worth of it, including $2.6 million belonging to his digital currency, which he founded himself and named after him.
Trump has pledged to make the United States the digital currency capital of the world, and said that he will expel Gary Gensler – whom Biden appointed to monitor cryptocurrencies and file lawsuits against their companies – from the country. He also received $25 million in campaign funding from crypto kings.
This prompted the Democratic candidate Kamala Harris To distance herself from Biden’s policy towards these currencies, she reached out to prominent figures in the crypto world and promised to support this sector, which prompted Chris Lehane himself to support her election campaign with $35,000.
