Why Republicans Embraced Crypto Before Trump: The Surprising Truth!
Let’s face it: when you think of who’s buzzing about crypto, the usual suspects pop to mind—Millennials, tech enthusiasts, and a bunch of savvy guys.
But wait! Are Republicans joining this digital revolution? Surprisingly, yes!
Recent insights from the University of Pennsylvania reveal an intriguing twist: Republicans are stepping up their game in the world of cryptocurrency, outpacing Democrats in ownership. And guess what? Geography plays a role too—Texans are waving their Bitcoin flags higher than Oregonians!
This trend sheds light on why President-elect Donald Trump is making bold moves to embrace crypto. “Trump discovered that his supporters are all about that crypto life,” explains David Reibstein, marketing guru at Wharton.
For two years, Reibstein and his team have been diving deep, surveying over 22,000 Americans about their crypto habits.
Here’s what they found:
◾ A notable 41% of Republicans own crypto, compared to 32% of Democrats.
◾ Conservatives show greater confidence in crypto than their liberal counterparts.
◾ The crypto craze is strongest in Texas and the Southeast, while Northeastern states like Connecticut and New Hampshire trail behind, along with parts of the Pacific Northwest.
Who’s Leading the Crypto Charge?
According to the Wharton research, the quintessential American crypto investor is a tech-savvy, younger male.
And yes, the stereotype holds: men are over twice as likely to invest in crypto compared to women.
Millennials reign supreme in the crypto arena. Those between 25 and 44 are the most passionate investors, followed closely by individuals aged 45 to 64, which includes Gen X and the younger Baby Boomers.
Interestingly, the youngest (18-24) and oldest (65+) Americans show less interest in crypto, likely due to differing levels of trust and access to funds.
So, why are Republicans leaning toward crypto? Reibstein points to one clear reason: decentralization.
Cryptocurrency operates independently of government or banks—it’s all about decentralized networks using blockchain technology to trace transactions and assets. “Republicans generally favor decentralized approaches, and crypto perfectly fits this mold,” Reibstein explains.
Bitcoin: A Libertarian Dream?
The research indicates that many conservatives embrace the idea of “distributed trust.”
They prefer a system where trust is spread among individuals rather than centralized in large entities like the Federal Reserve or big banks.
This aligns well with the familiar notion of conservatives advocating for states’ rights and limited government.
“Bitcoin’s roots are deeply libertarian,” notes Hanna Halaburda, a tech and operations prof at NYU’s Stern School. “Libertarianism values personal freedom and free markets while resisting governmental constraints.”
Take Texas, for example—it’s become a beacon of the crypto-libertarian ethos.
The Anti-Establishment Nature of Crypto
Interestingly, the Penn study portrays liberals and Democrats as defenders of traditional banking, particularly in the context of crypto. This may seem surprising since progressives often challenge authority.
In today’s crypto landscape, it’s the right that embodies countercultural sentiments.
“The essence of this movement is to empower individuals to conduct transactions independent of banks,” says Jim Harper, a crypto expert and senior fellow at the American Enterprise Institute. “This is truly anti-establishment.”
During the Vietnam War, the counterculture was leftist, yet today’s crypto advocates might be seen as “Trumpian-style hippies,” blending freedom and finance.
Both Harper and Reibstein agree: Trump’s shift towards crypto was a strategic move to resonate with his supporters. In his initial term, he dismissed crypto as “thin air,” but now he aims to make America the “crypto capital of the planet” with plans to amass a national Bitcoin stockpile.
“Trump finally got on board and reached out to the Bitcoin community during the last election,” Harper notes. “They were ready and waiting.”
Trump’s newfound enthusiasm for crypto has sparked a surge in interest among Republicans, with ownership jumping from 36% in late summer to 43% in December—just a month after Trump’s re-election.
Are You Ready to Get Paid in Crypto?
A big question remains: do Americans see crypto as a currency or merely an investment?
With about 38,000 ATMs now accepting crypto, including some at Costcos, Reibstein believes people will gradually start treating it more like a currency. “Once they see it in action, perceptions will shift,” he asserts.
But let’s be real—confidence in crypto is still a mixed bag.
While 54% of folks said they’d feel comfortable purchasing online with crypto, only a mere 7% are open to receiving their paychecks in it.
Interestingly, Harper shared his own experience—he was paid in Bitcoin during his time with the Bitcoin Foundation, but his wife insisted he convert it to dollars immediately!
