Pantera founder: cryptocurrency lands on national political stage

Author: Dan Morehead, founder of Pantera Capital; compiled by: 0xjs@Golden Finance

The massive political turn of blockchain

"Sometimes nothing happened in decades, sometimes it happened in weeks." - Vladimir Ilyic Lenin

I have invested in Bitcoin/blockchain for more than ten years. Nothing has happened to the US SEC and major administrative agencies. The rational thinking of ten years has only happened in a few weeks.

It's like a shock wave of a sonic boom. The correct idea for decades is now hitting politics.

In May, a presidential candidate expressed support for blockchain. A few weeks later, two of the three presidential candidates, ten U.S. senators and U.S. House members attended the Bitcoin conference! ? ! The change is definitely huge.

Too many things have happened, which are actually difficult to summarize one by one, but here is a quick refinement of the main policy initiatives:

President Trump's speech at Bitcoin 2024 conference: Policy initiatives

1. Bitcoin is a "technical miracle"

“Bitcoin is not just a miracle of technology, as you know it is also a miracle of human cooperation and achievement.”

2. Bitcoin may surpass gold

"But I want to say, this is the steel industry 100 years ago. I think you're still in the early stages...

"It's already bigger than ExxonMobil. Soon it will surpass the entire silver market value...

“One day it may surpass gold.”

3. Trump 's "America First" policy

"The reason why I came to give a speech to the Bitcoin community today can be summarized in two very simple words: America first. Because if we don't do that, China will do that, and others will do that. Let's do that and do it right. My vision is that America will do the future...

“I want the United States to be number one in technology, science, manufacturing, artificial intelligence and space.”

4. Make the United States a global leader in cryptocurrency

“This afternoon, I made my plan to ensure that the United States becomes the world’s cryptocurrency capital and the world’s Bitcoin superpower and we will complete it.”

5. The meaning of Bitcoin

"Bitcoin represents freedom, sovereignty and independence, and is not coerced and controlled by the government. The Biden Harris administration's suppression of cryptocurrencies and Bitcoin is wrong, which is very bad for our country. It's really not in line with the American spirit."

6. Encrypt and friendly policies and end “Chasp 2.0”

“As President, I will end 'Operation Chachoke 2.0' immediately…

“I will cut unnecessary regulatory burdens. Every day, I will work to make the United States the best place on the planet to do business, including cryptocurrency businesses.”

["Chone Action 2.0" is a term used by some in the blockchain industry to describe regulators' attempts to cut off the link between blockchain companies and banking services, a move that forces many projects to be regulated. ]

7. New Cryptocurrency Presidential Advisory Board

“After taking office, I will immediately appoint a presidential advisory board for Bitcoin and cryptocurrency. Their mission is to design transparent regulatory guidelines for the benefit of the industry as a whole.”

8. Regulatory clarity of stablecoins

“As part of our efforts to provide regulatory clarity, we will create a framework to enable secure, responsible expansion of stablecoins that will allow us to expand the dominance of the dollar to new areas around the world.”

9. Bitcoin will not pose a threat to the US dollar

"Those who say Bitcoin poses a threat to the dollar are completely putting the cart before the horse. I think it's putting the cart before the horse. Bitcoin does not threaten the dollar. The current U.S. government's actions are what really threaten the dollar."

10. Embrace new ideas

"Our country has never flourished by trying to examine new ideas and stifle people's dreams. America always puts our flag on the next frontier and moves forward bravely."

——Donald Trump, July 27, 2024, Nashville Bitcoin 2024 Conference

Section movement

Do I completely agree with the ten consecutive words Donald Trump said? Wow.

This is why I am so optimistic about the future of blockchain. All of these policies are completely reasonable.

No matter who serves as the next president of the United States, it is very likely that the United States will formulate a reasonable cryptocurrency policy.

What everyone likes most, and I strongly support it, and will be the subject of our long-term letters about monetary reserves (we will send it as a September Blockchain Letter), it is:

US Bitcoin strategic reserves

“Many Americans don’t realize that the U.S. government is one of the biggest holders of Bitcoin…

“The federal government has almost 210,000 bitcoins, accounting for 1% of the total supply. But our government has long violated the basic rules that every bitcoin user remembers: ‘Never sell your bitcoins’.

“So, as the last part of today’s plan, I announce that if I get elected, my administration, the U.S. policy is to retain 100% of all Bitcoins currently held or acquired in the U.S. government, we will retain 100% of all...

“This will actually be the core of the country’s strategic reserve of Bitcoin.

“So, I will take steps to convert this huge wealth into permanent state assets for the benefit of all Americans.”

——Former President Trump, July 27, 2024, Nashville Bitcoin 2024 Conference

Prior to President Trump’s speech, third-party candidate Robert F. Kennedy Jr. delivered a speech at the 2024 Bitcoin Summit, promising to significantly increase Bitcoin reserves.

“As the President of the United States, I intend to sign an executive order on the first day instructing the U.S. Department of Justice and the U.S. Marshals to transfer approximately 200,000 bitcoins held by the U.S. government to the U.S. Department of Treasury and hold it as a strategic asset.

"I will sign an executive order directing the U.S. Treasury to purchase 550 bitcoins a day until the U.S. establishes at least 4 million bitcoins reserves and occupies a dominance that other countries cannot usurp. Our country holds about 19% of the world's gold reserves. This policy will allow us to obtain about the same proportion of the total bitcoin reserves. The chain effects of these actions will ultimately bring Bitcoin's valuation to millions of dollars."

——Robert F. Kennedy Jr., July 27, 2024, Nashville Bitcoin 2024 Conference

Shortly after Trump's speech, Senator Cynthia Lummis (R-Wyoming) read out her own legislative proposal to amass an official U.S. Federal Reserve in five years.

"This is the Bitcoin Reserves Act. I read from the text that the U.S. Senate will establish a strategic Bitcoin reserve, a network of secure repository, a purchase plan and other programs to ensure the federal government's transparent management of Bitcoin holdings...

“When Satoshi Nakamoto mined his first bitcoin in January 2009, he brought in an asset that would change the world, and that’s our Louisiana purchase moment.

“The Bitcoin reserves we are going to create will start with the 210,000 bitcoins that President Trump just mentioned and deposit them into vaults stored in different geographical locations, which is just the beginning. Within five years, the United States will collect 1 million bitcoins — 5% of the world’s supply.

“It will be held for at least 20 years and can be used for one purpose: to reduce our debt.

“Bitcoin will change this country. As President Trump just said: ‘We printed too much money, we spent too much money.’ During the COVID-19 pandemic, the money we printed in 22 months was equivalent to the total amount of money printed in U.S. history. Well, there won’t be more.

“With strategic bitcoin reserves, we will have an asset that can cut our debt in half during that time before 2045.”

——Senator Cynthia Lummis, July 27, 2024, Nashville Bitcoin 2024 Conference

Two parties support

Rep. Khanna (D-CA District 17) and Nickel (D-NC District 13) also attended the meeting, highlighting the obvious:

"I really don't understand what partisanship is there. Opposing Bitcoin is like opposing mobile phones."

——Interview by Congressman Ro Khanna, CNBC, July 26, 2024

Amen. Satoshi Nakamoto gave this technology to the world.

“Keeping this issue within the bipartisan consensus is indeed my main focus in Nashville, and that’s something I’ve been working on in Congress.”

——Parliament Member Wiley Nickel, interview with Bitcoin Magazine, August 2, 2024

Sound explosion

“Kamala Harris’s adviser has approached top cryptocurrency companies to ‘restart’ her relationship with the cryptocurrency industry that has become a key supporter of Donald Trump, her rival in the U.S. presidency.

"Members of the vice presidential team have contacted people from cryptocurrency companies to discuss recent meetings. Two of the people familiar with the matter said the companies include leading exchange Coinbase, stablecoin company Circle and blockchain payment group Ripple Labs," said four people familiar with the matter.

——Financial Times, “Kamala Harris campaign seeks 'restart' with cryptocurrency companies”, July 27, 2024

Finally free

“Being able to bring resources and opportunities to those who need it most, to get them into the market, that’s what Bitcoin is about. That’s what Bitcoin is about. Give the average American the opportunity to make their own decisions at home. No matter where you live, whether you’re on a mountaintop or at a low point, having the opportunity to democratize our financial footwork is an absolutely necessary part of realizing the American dream. No matter what we can do, no matter where we can do it, let’s do it well…

"As the chairman of the Senate Banking Committee, one thing I will absolutely guarantee to do is watch your bill pass on the Banking Committee, we will work to make it the law of the United States, and make Bitcoin free in the United States, and finally free! Finally free! Thanks to the Almighty God, it is finally free..."

——Senator Tim Scott and Senator Cynthia Lummis’s speech at the 2024 Bitcoin Conference, July 26, 2024

Most Americans

"'How did you go bankrupt?'

Another answered, "Two ways. Gradually, then suddenly. (Gradually, then suddenly)"

——Hemingway, "The Sun Rises As Always", 1926

Students who do not need political science majors can understand why the two political parties suddenly turned to blockchain.

Most Americans are under 40 years old.

Almost all the Fed's policy mistakes and the consequences of Congress printing money fell on the heads of older Americans.

Most Americans are paying for these mistakes through housing costs.

Since 1987, mid-priced homes have been more affordable than ever.

They voted.

#Buy Bitcoin.

"Bitcoin - Huge Asymmetric Opportunity": Review of the 2024 Bitcoin

Conference Panel

Roundtable members: Dan Morehead, Founder and Managing Partner, Pantera; Anthony Scaramucci, Founder and Managing Partner, SkyBridge Capital; Gary Cardone, Managing Partner, Cardone Digital Ventures

The most asymmetric and most unmissable transaction

Dan: "Anthony, we were working at Goldman Sachs, and they were doing GSCI, and now everyone thinks commodities are an asset class. I was working in emerging market research in the 90s, and now everyone thinks emerging markets are an asset class. About five years later, every institutional investor on the planet will have a blockchain team. They will have an allocation. It's about 800 basis points. I'm still so optimistic about it, and I think it's still so asymmetric because no one has such an allocation now.

"This is the first deal that 'smart money' missed, right? Everyone here, like you, has done this, and almost all institutions have zero or less than 1% of their assets on the blockchain.

"It's not only the most asymmetric deal I've ever seen, but I think it's also the most unmissable deal I've ever seen. It might take longer than we thought. It might have some ups and downs, but basically everyone with a smartphone will use blockchain for a decade. It's obvious. So, that's why I still think it's still very asymmetric because institutions haven't really solved this problem yet."

Does he still complain? ! ?

Aaron: "You said it might take ten years to reach the market capitalization of gold. We don't know. It's hard to predict, but why does it take so long? Why does it take so long to achieve it?"

Dan: "The question for Aaron is why I like this deal. We've been doing this deal for eleven years, and in those eleven years, Bitcoin doubles on average every year... and he complains that it took too long. Now, **This is a great deal!"

The political turn of blockchain is the biggest news in the

cryptocurrency space

Aaron: "Whatever your personal point of view, will it be orders of magnitude for Bitcoin if Trump wins? Or how do you think of it as a Bitcoin holder?"

Dan: “I really think this is the biggest news in the cryptocurrency space…

"I think the former president changed his perspective in May was the biggest event in the cryptocurrency space because whether he was elected or other candidates were elected, everyone changed. The US SEC launched the ETH ETF within a week. Everything changed. I really think it was a huge change because now politicians see cryptocurrencies are very popular. Think about it. Most Americans are under 40. They all love cryptocurrencies and they vote. So politicians can combine the two."

Bitcoin’s killer application is Bitcoin

Aaron: "Bitcoin's token economy is developing. Does Bitcoin need to develop? This is a question. Does Bitcoin need to develop a strong token economy to become that asymmetric bet? For example, if the token economy cannot develop, will Bitcoin's growth be limited, or how do you think of it?"

Dan: "I think it's a great thing to build some cool projects on Bitcoin. It's great to have projects like Stacks, but people sometimes say, 'What's the killer app for Bitcoin?' Bitcoin is the killer app for Bitcoin. There's so much wealth stored, so much savings, so much cross-border money flowing. So, even if nothing else is built on Bitcoin, it's an amazing development for the world."