If Bernie Sanders Becomes The 2020 US President; How Would That Affect Bitcoin?

The Nevada Democratic caucus just showed senator Bernie Sanders as the winner. While voting was coming to a close, it was revealed that Sanders was leading Joe Biden by far.

If he’s elected, the impact on cryptocurrencies such as the Bitcoin (BTC) would be major. The results of the Nevada caucus indicate he has a good chance at defeating President Donald Trump. Sanders is the most likely nominee, but Biden will stake his flagging campaign at the South Carolina event from next week too.

How Will the Economy Be Affected?

Whereas the President doesn’t have too much influence over the economy, Sanders came up with some policies that made economists doubt him. For example, he offered forgiveness for student loans, advocated medical care for single payers and promised to fight “corporate greed”. His policies can be called anti-Trump and socialistic, but he still gained a lot of sympathy from the Democrats.

However, these policies may greatly impact the Federal debt, causing the US dollar to become crippled. The more debts increase and consume from the GDP, the more the dollar is devaluing, which can lead to a spiral inflation and the destruction of the US economy.

The BTC Would Bounce

On the other hand, Sanders’ policies could have a positive impact on the BTC’s value. The more this digital currency decouples from the dollar and the US national currency devalues, the more BTC’s value increases. Such an example was given by Venezuela, where while the Bolivar was being tanked, digital currencies were being used more often for transactions. The use of BTC and DASH went through the roof because merchants looked for transfer methods that are stable when compared to the country’s currency.

In case this would happen in the US, new users would enter the market and cause cryptocurrency prices to go up as a result of increased usage. In other words, Sanders may bring only good for the BTC.

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Author: Oana Ularu

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