Bitcoin Recovers Back to the Verge of $40K As Trump Impeached for Second Time
W. Paul Alexander
Better Call Paul Blog
|||NOTE: For an updated version of this article combined with an entirely different perspective, see what I have to say about volatility, politics, The Whales, and more, take a gander at my latest ---> HERE <--- |||
[WASHINGTON, D.C. | 01/13/2021 @ 7:15 PM]
No matter what happens from here on out, Donald Trump cemented his name in history today as he becomes the first president in the nations almost 250-year history to be impeached twice. The impeachment resolution passed a vote in the house by a healthy margin and was joined by 10 Republicans who say that after the events on January 6, 2021 that escalated to the point of insurrection as an angry pro-Trump mob breached 4 layers of security and ran rampant in the Capitol -- culminating in the loss of at least 5 lives -- that they can no longer support Trump remaining in office, even for the week that he has left.
So, as a taxpaying American, you probably don't understand why our elected representatives would spent tax dollars holding a second impeachment trial for a man that will be leaving office in 7 days. That's probably the most frequent question I've been asked in the last week in the aftermath of the Capitol attack and the removal discussions that almost immediately followed the carnage.
Well, as I described in an earlier article, if the Congress so chooses, they can add extra conditions beyond just the immediate removal from office that comes from an impeachment conviction, such as stipulating that Trump never hold public office again, or that he forego his salary; or any other benefit that may be available to him not protected under statute, such as by the Former President's Act, which allows former presidents life-long Secret Service protection.
In said article, I also published the full text of the Article of Impeachment, so we know that they were already seeking to prohibit him from seeking office in the future, but at that time, the vote had not been had. We now know that the resolution passed, and Donald Trump has been impeached for the second time -- the only US President in history to have that dubious distinction. This does not mean that he has been removed from office -- it means that the House of Representatives has approved the Resolution, which has the effect of starting the process by which the Senate receives such Articles and proceeds to trial.
Mitch McConnell, for one of his last acts as Senate Majority Leader, has rebuffed calls to call the Senate back early to begin the Senate trial before Trump's term ends on January 20, 2021 -- in about 5 1/2 days. This means that Trump's Senate trial will occur after Biden has taken office, so the main consequences will be the future ones listed above.
Crypto Doesn't Really Care About Trump
Political news like this used to have massive effects on traditional stock markets, with news that is bad for business exerting negative price swings. This does not appear to be the case anymore, as Bitcoin and others have already recovered from their dip last week, as so:
Bitcoin, which crossed the $40,000 USD price point before a correction that saw prices swing briefly down to the low-30's. In the time since, Bitcoin has been hovering around $33-35K, but has now recovered and is about to cross $40K again. What's interesting here is that the market dip didn't even break Bitcoin's parabolic upward trend, which is what Bitcoin's price history looks like since the bull run began. Many people are prediction six-figure Bitcoin soon; I think that it will at least his $50,000 very soon. From there, we could see the whales initiate another correction so they can pick up a "low" price before not having the chance to do so again. One prediction I'm very, very positive of -- I don't think we'll ever see sub-$20K Bitcoin ever again.
During the aforementioned dip last week, Ethereum fell from around $1300 to around $1050. As far as I know, though, it did not fall under $1000, and I don't think it ever will again. Keep in mind, before this current bull run, sub-$300 ETH was possible, so those who bought in then and held are really loving the 400% increase in price.
Stellar (XLM) is quickly becoming one of the "buy" coins, in my opinion. Last week, I allocated 8.8% of my portfolio to XLM and I think that it will pay off. One of the main reasons for this is that it is becoming a first-line choice for a platform for many government central bank digital currencies (CBDC). Remember, CBDCs are essentially blockchain projects but are centralized and in the control of a nation's central bank, which causes all sorts of issues among a community founded on decentralization. However, as we've learned lately -- among large projects, decentralization is a myth.
In the case of Stellar (XLM), Ukraine has just signed a contract with the foundation behind Stellar to develop the Ukrainian CBDC on the Stellar blockchain. That's all I needed to know, really -- as once a project has a government sponsor, it will see widespread adoption -- the goal we've all shared since the beginning. I predict that we will see other nations also adopt the Stellar blockchain, following in Ukraine's footsteps.
Bitcoin Cash, the most popular and longest-lasting hard fork of Bitcoin, has breached the very important $500 threshold. Of course, this is nowhere near and all-time high for BCH, which was $3,719 during the 2017 bull market, which also has a great deal to do with the value of BTC at the time BCH was forked. It has remained a solid project, with platforms like read.cash making a great use case for the BTC that tries to imitate the spirit of cash, and seeing it go past $500 already is very promising.
That about covers it for now. As always, comments are welcome! I will do my best to personally reply to each question/comment you all leave!
|||NOTE: Hey Everyone! I've used this article as the continuing basis for another commentary. For an updated version of this article combined with an entirely different perspective, see what I have to say about volatility, politics, The Whales, and more, take a gander at my latest blog entry ---> HERE <--- |||