Trump Expands Bitcoin Support With No Tax Promise For Digital Transactions

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As a seasoned researcher with a keen interest in both politics and finance, I find the recent developments surrounding Bitcoin and the US presidential election to be nothing short of intriguing. Having closely followed the crypto market for years, it’s fascinating to see how political narratives are influencing its trajectory.

As the United States presidential election approaches within a week, Donald Trump, a previous U.S. president, has significantly boosted his endorsement of Bitcoin (BTC) and the entire cryptocurrency sector.

In his latest public address, Trump suggested substantial modifications that might redefine the American digital asset transaction terrain. These adjustments are particularly noteworthy given the intensified regulatory oversight over the past few years.

No Capital Gains Tax On Bitcoin Purchases

Trump’s plan to establish the U.S. as a leading hub for cryptocurrencies involves a fresh suggestion to waive capital gains taxes on Bitcoin transactions that are employed for purchases.

On his social media platform (previously known as Twitter), Michael Saylor – MicroStrategy’s co-founder and a prominent Bitcoin supporter – shared President Trump’s recent remarks about the topic.

It seems unfair that they are imposing taxes on cryptocurrency transactions, especially when using Bitcoin as a form of payment for everyday items like a cup of coffee triggers capital gains tax. My friend and I both think this isn’t reasonable.

Trump’s comments arise amidst an expansion of his advantage over Vice President Kamala Harris, as indicated by polls on Polymarket – a cryptocurrency forecasting platform – which assigns him a 66% probability of securing the upcoming election.

Contrarily, conventional surveys suggest a contrasting narrative, with Harris appearing to have slight advantages in pivotal battleground states such as Michigan (48% to 43%) and Wisconsin (51% to 45%). A recent CNN poll, however, shows an even match between the candidates in Pennsylvania at 48% each, highlighting the tightness of the race as Election Day draws near.

Analyst Warns Harris Victory Could Impact BTC Prices

The way Trump’s standpoint on cryptocurrency is being received within the industry is quite significant. His views on this topic are markedly different from Harris’, whose policy towards digital currencies appears to be more conservative and not as clearly defined.

Significantly, Donald Trump has initiated a cryptocurrency project called World Liberty Financial (WLF), and if re-elected, he plans to dismiss Gary Gensler as the chair of the Securities and Exchange Commission (SEC) on his inaugural day.

Previously elected leader has furthermore suggested that Bitcoin could be utilized as a strategic reserve asset, aiming to decrease the existing $35 trillion national debt. This idea has garnered attention from both political parties, with members of Congress demonstrating growing excitement about it.

Florida’s Chief Financial Officer, Jimmy Patronis, has suggested an unconventional strategy: investing a portion of the state’s pension funds in cryptocurrencies like Bitcoin. This idea is inspired by President Trump’s recent focus on digital assets in the U.S.

Although Harris takes a more conservative stance on cryptocurrency compared to President Biden, certain experts speculate that a win for Harris might result in a potential drop in the value of Bitcoin.

According to Michael Terpin, the CEO of Transform Ventures, the positive trajectory of Bitcoin’s price is expected to persist, irrespective of the election results. This could lead to additional recoveries and even the possibility of reaching new record highs, as suggested by his remarks.

Currently, there’s an overwhelming push in the direction we’re going. We’re nearing a phase where things tend to escalate significantly. I believe that if Trump were to win, this rise could happen more rapidly, intensely, and reach greater heights.

At the time of writing, Bitcoin was trading at $71,930. 

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2024-10-31 14:42