Trump promotes the legalization of Bitcoin and the stablecoin bill, with the core goal of breaking the economic deadlock of MG and achieving "Make MG Great Again." Analyzing the background and strategy:
The lifeblood of the MG economy is finance: Over 40% of U.S. GDP relies on financial derivatives, and the economy is highly dependent on financial markets. Financial volatility (such as stock market crises) can easily trigger recessions and unemployment.
Bottleneck in value creation: Sustainable economic development requires real value creation, not just speculation. After a 20-year bull market in U.S. stocks, coupled with an economic downturn, it has become difficult to continue attracting global capital inflows with the existing model.
Unresolvable U.S. debt dilemma: The massive U.S. debt cannot be repaid through traditional production in the short term (such as a 4-year term) or foreseeable future.
Limited scale of the crypto market: The total market capitalization of Bitcoin and altcoins (about $1 trillion) is far smaller than that of U.S. stocks (about $6 trillion), making it difficult for the crypto market or the existing stock market to bear such a heavy burden.
So, what is the significance of the stablecoin bill and Bitcoin strategic reserves?
Trump's strategy essentially uses stablecoins as a breakthrough, leveraging the global popularity of Bitcoin as a "cover" to break the barriers to international capital investing in U.S. stocks:
Stablecoins are a key channel: They aim to provide a convenient, low-friction investment channel for global investors (especially ordinary overseas investors facing high thresholds, cumbersome procedures, and taxes).
Bitcoin is a marketing tool: Utilizing the global attention and "innovative" image of Bitcoin to attract attention and create momentum for opening up investment in U.S. stocks.
Final goal: By opening stablecoin investment channels, significantly reduce the barriers for global capital to enter U.S. stocks, attract massive international capital influx into the U.S. stock market, quickly boost the market, stimulate the economy, and thus solve the issues of weak growth and debt pressure, fulfilling its political promises. This is more efficient than traditional investment attraction.
