Mercantilism is an economic system that emerged in Europe between the 16th and 18th centuries and is based on the strategy of having a foreign trade surplus to increase a country's economic power. In this system, gold and silver accumulation was considered the main indicator of a country's wealth and power. Mercantilism advocates increasing exports, limiting imports, and ensuring that the state plays a strong role in the economy.
When Donald Trump took office in 2017 with the slogan "America First," he adopted a mercantilist approach to protect the economic hegemony of the United States. He started trade wars, limited imports, and focused on increasing domestic production.
However, this strategy had a major shortcoming: The realities of the 21st century were no longer a game that could be played with traditional assets such as gold and silver. The dollar had to remain strong, but as long as the dollar remained strong, it was not easy to achieve growth from within, strengthen exports, and reduce import dependency. The United States needed a new gold and silver.
Bitcoin was a candidate who could fill this gap. However, between 2017 and 2020, the Trump administration kept its distance from Bitcoin. Perhaps this was because Bitcoin was an asset far from US control at the time.
China controls 75% of mining, and the exchanges that dominated the market were based in Asia. For the Trump administration, Bitcoin seemed like only a threat at the time.
2021: China's Withdrawal and a New Opportunity
After Trump lost the presidency in 2020, the Biden administration took office. During this period, global economic balances were changing rapidly. In 2021, China banned Bitcoin mining and lost its influence on digital assets. Was this a deliberate decision or a result of economic and regulatory pressures? Whatever the reason, this move left the Bitcoin scene empty and created a new opportunity for the US.
During this period, China and Russia began to move away from US bonds and towards classic assets such as gold and oil. However, the US developed a new strategy: to integrate Bitcoin into the American financial system. The Biden administration inherited some of the trade and technology-focused policies that began during the Trump era, but expanded them with a digital vision.
Bitcoin and the Digital Power of the US
The US’s digital mercantilist plan aimed to make Bitcoin part of the global economic hegemony. The key steps of this plan were:
Reducing China and Asian Influence
China’s withdrawal from Bitcoin mining presented an opportunity for the US. Regulatory pressures on Asian-based exchanges increased. Platforms such as Binance were scrutinized by US regulators. With these pressures, US-based platforms such as Coinbase became stronger and US influence on Bitcoin increased.
Regulation and Transparency with Spot ETFs
In 2023, the approval of Bitcoin Spot ETFs in the US significantly changed the anonymous structure of Bitcoin. Thanks to Spot ETFs, Bitcoin ownership became named and taxable. This provided a new revenue stream for the US financial system and made Bitcoin a regulated financial instrument. Anonymous wallets were replaced by institutional ownership.
Tether and US Treasury Bonds
Tether, the liquidity source of the Bitcoin ecosystem, was an important part of this strategy. Tether backed its reserves with US bonds. This, on the one hand, ensured the stability of the Bitcoin market, while on the other hand, increased the demand for US bonds. While China and Russia withdrew from the bond market, Tether's purchases supported the US economy.
Michael Saylor: Spokesperson for Digital Gold
MicroStrategy CEO Michael Saylor played a critical role in the adoption of Bitcoin by American companies. Saylor's Bitcoin investments could inspire other American companies and accelerate Bitcoin's acceptance in the corporate world.
Elon Musk: Pioneer of the Digital Age
Tesla's Bitcoin purchase in 2021 was a turning point in the corporate world's adoption of this new asset. Twitter, the most important stage of the crypto ecosystem, was purchased in response.
Digital Mercantilism: A New Balance of Power
As a result, the US has redefined Bitcoin as an economic and strategic opportunity rather than a threat. Digital mercantilism could be an extension of classic mercantilist policies in the digital age.
With this strategy, the US:
- Positioned Bitcoin as global digital gold.
- Linked Bitcoin’s global transactions to the American financial system.
- Encouraged a named, taxable ownership structure instead of anonymity.
The New Order of the Future
This process could be a combination of both the trade-focused policies that began during the Trump era and the Biden administration’s digital vision. As gold and silver gave way to Bitcoin, the US has become the leader of the global digital economy. Now, Bitcoin is not just a cryptocurrency, it could be a symbol of US economic power in the digital age. This is not just an economic transformation, but perhaps a revolution that will redefine global balances of power.
