What U.S. Presidential Elections Both Past and Present Mean for Bitcoin

Votes are still trickling in as election officials continue to count mail-in ballots during day two of the U.S. Presidential Election. After day one of election coverage, Biden holds a marginal lead over Trump. Normally at this stage in the game, Biden would already be celebrating victory and officially be named the 46th president in the history of the United States of America. Of course, due to the coronavirus pandemic and millions of ballots being cast via mail, Biden is likely going to have to wait until close races in Michigan and Pennsylvania are settled. He may also have to wait until Trump is finished challenging the validity of votes in various states via the Supreme Court after the election.

Regardless of whether Biden manages to hold onto his current lead or Donald Trump gets re-elected, Bitcoin has been on quite a ride throughout this election year and the 2016 election year as well. Let’s look at Bitcoin’s continued rise to establishing itself as a legitimate store of value over the last four years and what might happen once the dust settles around the current election.

Bitcoin’s Price Is Up 1,900% since the 2016 Presidential Election

With Bitcoin currently hovering between $18,000 and $19,000 Canadian, it’s hard to imagine that around this time four years ago, you could have purchased a Bitcoin for $700 USD, or about $1,000 Canadian.

Many factors led to the meteoric rise in price over the last four years. For one, 2016 was a year in which Ethereum and Litecoin began to really grab hold of the altcoin market. Those projects proved that decentralized currencies built on the blockchain could fulfil different use cases in different ways and offered contrast to Bitcoin’s approach. This provided the whole cryptocurrency industry with greater validity and promise.

Then in the summer of 2017, retail investors began to pour money into initial coin offerings. Ethereum stood at the forefront of that movement, allowing developers to raise money that would help them build their ideas and investors profiting handsomely from that. Bitcoin eventually rose to an all-time high of over $20,000 Canadian by the end of that year. That’s a mark we haven’t reached since.

All in all, former President Barrack Obama’s message of hope seemed to bleed into the crypto market at just the right time. That’s ironic considering that animosity and uncertainty are factors that could actually catapult Bitcoin to a whole new level for the rest of this year and for years to come.

How Will Cryptocurrencies Fair After This Election?

President Donald Trump is on the record saying that he will give Americans “… a tremendous stimulus package after the election.” Americans should expect nothing less from a Republican billionaire who is managing to keep the stock market upright despite a second wave of coronavirus cases grabbing hold of the country. That said, even if Joe Biden knocks off the incumbent President, he’ll likely have no choice but to do the same thing.

Given that this election race is so close, no matter who wins, there are likely to be several legal challenges that delay any declaration of a victory by either side. However, if Biden wins, Trump is likely to be much more aggressive with litigation in the courts, which means that by the time Biden officially moves into the White House, it’ll be mid-January 2021 and America will face three more months of uncertainty. All of that news would be great for Bitcoin.

Regardless of the election or what happens directly after, investing in cryptocurrency is proving to be a profitable endeavour over the long term as the 2016 presidential election and the four years since then have proven. If you’re ready to purchase Bitcoin at a cryptocurrency exchange in Canada, choose Netcoins.

Netcoins is Canada’s first publicly owned crypto trading platform to be fully regulated. Create an account, fund it with an e-Transfer (other funding options available), and head to the trade page to buy bitcoin. Sign up today!