Is the U.S. the Global Crypto Hub? Discover the Truth!
By Alissa Yoon
Boston University News Service
In a world where technology has transformed everything from healthcare to transportation, there’s one realm that’s finally catching up: our money. Enter the crypto revolution, spearheaded by none other than President-elect Donald Trump’s bold pro-crypto vision, which has sent Bitcoin soaring by a staggering 45% since the election. That’s right—Bitcoin just hit a jaw-dropping $102,900, according to Reuters.
But it hasn’t been all smooth sailing. Gary Gensler, the former SEC chair under President Biden, raised eyebrows and concerns with stringent actions against crypto businesses, accusing them of fraud and money laundering, as reported by the Associated Press. This regulatory environment stunted investor confidence and stifled the explosive growth potential of crypto.
Wes Jorgensen, a junior at Boston University studying computer science and economics, observes that with a crypto-friendly administration on the horizon, we might soon witness the birth of a fully legal and regulated crypto industry. The groundwork was laid back in 2008 by the enigmatic Satoshi Nakamoto, who penned the revolutionary Bitcoin Whitepaper. This groundbreaking document not only introduced Bitcoin but also painted a vivid picture of a future dominated by crypto, sparking endless speculation about Nakamoto’s true identity—could it be an individual genius or a secretive collective?
According to Jorgensen, the Bitcoin Whitepaper was steeped in libertarian principles, aiming to empower individuals during the tumultuous 2008 financial crisis that saw rampant bank failures and skyrocketing unemployment. This radical vision sought to dismantle the traditional banking system, enabling direct financial transactions and ownership. As Michael Sun, a business sophomore at BU, elaborates, transferring money through banks can drag on for days, while blockchain technology allows immediate fund transfers without a middleman.
Initially, Bitcoin raised eyebrows for its potential to dethrone the U.S. dollar. Yet, Sun points out that both the government and financial powerhouses like J.P. Morgan and BlackRock are now rallying behind crypto. In fact, many are exploring digitized versions of the U.S. dollar, known as Central Bank Digital Currency (CBDC), which could reinforce the dollar’s dominance in the global market.
“I’m laying out my plan to ensure that the United States becomes the crypto capital of the planet and the Bitcoin superpower of the world,” Trump declared at the Bitcoin 2024 conference this past July. “We’ll get it done.”
As we gaze into the future, Bitcoin’s ascent poses exciting questions about the untapped potential of crypto. Jorgensen envisions a surge in crypto entrepreneurship, increased investment capital, and the seamless integration of blockchain into everyday life. In a bold move, earlier this year, the California DMV digitized 42 million car titles onto the blockchain to combat fraud, a clear indicator of institutional trust in blockchain, according to Reuters.
However, crypto differs significantly from traditional currency; its value is driven by investor behavior rather than established monetary systems, as noted by Freeman Law Firm. This presents challenges, as the lack of regulation leaves minimal legal recourse in disputes over ownership and transactions. Jorgensen sums it up perfectly: “We’re trying to apply regulations from the 1990s to today’s computers. It just doesn’t work anymore.”
