Donald Trump is defeated and therefore tomorrow will be better? The Biden administration will soon see the light of day. It's difficult for the moment to know if it will be cryptophilic, cryptophobic or crypto-ignorant.
Does Biden know Bitcoin?
Joe Biden will soon be entering the White House; it is difficult to determine the impact of the results of the controversial US presidential election on the cryptos markets, as Biden did not talk much about it during his campaign.
In the immediate term, Bitcoin (BTC) first dropped to the level of $14,600 USD on November 7, 2020 when the results were announced, before climbing back up to $15,600 USD the next day.
For Noelle Acheson, who heads Coindesk's Research Department, the fall in the price of BTC would come from a prospect of a stable transition, challenging the chaos theory - multiple recounts of votes, an economy paralyzed in the absence of recovery - which would have harmed the dollar and benefited Bitcoin.
Bitcoin would represent the anti-system vote; however, Biden's statement as the winner showed that the system works - and therefore that investors were wrong to use Bitcoin as a hedge?
Acheson nevertheless indicated that the theories on the devaluation of the dollar remained "intact", even though the greenback is currently on a reprieve.
A Biden administration working with a Republican senate would have to ease monetary policy, a fact that would benefit limited supply assets like Bitcoin.
How will Biden deal with the cryptos? His 40 years as Delaware Senator took place before Satoshi Nakamoto's White Paper on Bitcoin was published.
Almost 30 years ago, he introduced 2 bills to ban data encryption; this instead encouraged the development of PGP keys.
We are waiting for the names
The impact of the Biden administration on cryptosystems will depend largely on who it appoints to key positions in the U.S. Treasury.
Rumor has it that Lael Brainard, who leads the Boston Federal Reserve's research on the digital dollar, is one of Biden's first choices for the Treasury Department.
The Wall Street Journal also reported that former Commodity futures trading commission (CFTC) chairman Gary Gensler may be asked to play a role in Wall Street oversight.
In 2019, Gensler called blockchain technology a "catalyst for change. The executive director of the Blockchain association, Kristin Smith, said few names have been released.
She said the ideal scenario would be to have individuals familiar with cryptography in these positions.
According to John Collins, a partner in the consulting firm FS Vector, cryptos will not be a priority for the Biden administration, given the pressing issues of economic recovery and covid-19.
Collins points out that changes in the financial sector are undeniable and that the regulatory framework must keep pace with these dynamics.
Will Biden save the dollar or condemn it to death? Bitcoin, the vampire of the dollar, will not fail to feed on the blood from a hemorrhaging greenback.
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