On December 6, Xinhua News Agency reporter Su Liang published a commentary titled (The US financial ecology and risks behind the "Bitcoin Rush"), which made a profound analysis of the current surge in Bitcoin and the Trump administration's policy to promote cryptocurrency. The article specifically mentioned that former US President Trump's statement on December 5 and his appointment of former PayPal COO David O. Sacks as the White House's head of artificial intelligence and cryptocurrency affairs are obviously an important part of the cryptocurrency strategy.
Trump and the cryptocurrency duplex
In 2019, Trump clearly expressed his dislike for cryptocurrencies such as Bitcoin, believing that they were "illusory in value" and extremely unstable. However, in 2024, he suddenly changed his position and proposed to make the United States the global capital of cryptocurrency and promote Bitcoin to become the "seventh largest asset" alongside gold and technology giants such as Apple and Google. He even planned to replace gold as the US national reserve asset by establishing Bitcoin reserves.
This change may not be purely due to Trump's personal wishes, but is driven by more complex interest groups. The funding and political influence of the cryptocurrency industry is gradually increasing in the United States, and more and more political action committees (PACs) are funding the promotion of cryptocurrency policies. These PACs are composed of large cryptocurrency institutions and have played a significant role in US elections.
The Game Between Cryptocurrency and the U.S. Financial System
Su Liang pointed out that the Trump administration's policy on Bitcoin is not only a challenge to the financial system, but also a profound impact on the US economic structure. The price of Bitcoin rose sharply after Trump's public statement, partly due to the market's expectations for the future cryptocurrency policy of the United States. However, this rise was not accompanied by the improvement of the US financial regulatory system. On the contrary, the US federal government's "money-spending" policy has exacerbated inflation, resulting in a decline in the purchasing power of ordinary Americans, forcing them to turn to financial innovation tools such as Bitcoin to preserve value.
However, Bitcoin is extremely volatile and easily affected by market sentiment, hacker attacks, banker manipulation and other factors, and investors' risks have also increased significantly. Although 17% of Americans are involved in cryptocurrency investments, the majority express distrust in the safety and reliability of Bitcoin. In this regard, Su Liang analyzed that large capital in the United States has formed a mechanism similar to "harvesting leeks" through the hype of cryptocurrency, and ordinary investors may suffer huge losses by blindly following the trend.
China’s Countermeasures: Cryptocurrency Sniper War
In this context, Su Liang's comments do not stop at analyzing the current situation in the United States. More importantly, the article implies that China will launch a targeted crackdown on Bitcoin and cryptocurrencies. China has always been cautious and even hostile to cryptocurrencies. Su Liang pointed out that behind the promotion of Bitcoin by Trump, Musk and others, they are actually re-arranging the global financial system, and China may take more severe measures to counter it.
China not only has relatively clear regulatory policies, but has also begun to intensify warnings and crackdowns on cryptocurrency investors. Su Liang believes that with the surge in Bitcoin and the advancement of Trump's policies, China is likely to adopt a "counterattack" strategy to control the influence of Bitcoin and cryptocurrency through public opinion warfare and policy tightening to avoid excessive financialization and hollowing out of capital, which in turn affects the real economy.
Trump and Musk's behind-the-scenes operations: dangers and opportunities
Su Liang also mentioned in his comments that Musk is an indispensable "promoter" behind cryptocurrency. As one of the founders of PayPal, Musk has promoted the prosperity of cryptocurrency through his business and policy influence. In fact, the cryptocurrency policy in the Trump administration may have been implemented by Musk through his technical aide David Sachs. Musk has continuously strengthened his influence in the fields of science and technology and finance in recent years, and behind his promotion of virtual assets such as Bitcoin, there is also the reconstruction of the global financial system and the intensification of the hollowing out of the US economy.
Conclusion: The game of global financial situation
Su Liang concluded in the article that Bitcoin and cryptocurrency have gradually become a force that cannot be ignored in American politics. Trump and his team are trying to make Bitcoin a global reserve asset by promoting this policy, and in this way "harvesting" global capital. However, Su Liang warned that this "financialization" policy will not only fail to solve the bottleneck of the US real economy, but will increase the financial risks of the United States.
At the same time, Su Liang also pointed out that with China's strong crackdown on cryptocurrencies, the US strategy of promoting financial hegemony through cryptocurrencies may face challenges. In the future, the competition in the global financial landscape is not only a contest of technology and market, but also the result of national policies and interests.
From this perspective, the Bitcoin promoted by Trump and Musk is not just a manifestation of financial innovation, it may mean a deeper adjustment of the global economic structure and a struggle for political interests. In this game, how countries around the world, especially China, respond will determine the direction of the future financial system. $BTC