Experienced market participants know that politics and investing often intersect. With this being a presidential election year, related concerns are likely to be heightened. Likewise, there are some sectors and industries that are often more beholden to politics than others. Think energy, healthcare and technology, though for different reasons.
Compared to those groups, blockchain is young, but it’s increasingly becoming a political hot spot. That’s worth examining if for no other reason than that blockchain isn’t necessarily drawing political scrutiny. Rather, more candidates for high-level offices are voicing support for the technology.
With more politicians endorsing blockchain, it’s possible that investment implications are solidified, will increase or both. Political support of blockchain, particularly if it evolves in bipartisan fashion, could signal those in the know view the technology as having utility beyond the world of cryptocurrency. That’s something investors have known about for some time.
Why Politicians Are Backing Blockchain
As noted above, this is a presidential election year and as usual, candidates from both parties are looking to woo young voters. Research firm Pantera pointed out that the majority of Americans are under the age of 40. And most of them are believers in blockchain.
“One of the American Presidential candidates came out strongly in favor of blockchain,” noted Pantera. “Very crafty move – as many of the young people who own crypto are so passionate about its importance to the world that they are single-issue voters. This stance seems likely to draw young people to a candidate that they might not have considered supporting before.”
The thing is about one party backing blockchain and potentially luring young voters in the process is that the other party won’t take those moves in idle fashion. The opposition is likely to respond, thus potentially creating a perfect storm of bipartisan support for blockchain.
“The other then scrambled to change his administration’s position. A massive 180 with the SEC now rushing to get ethereum ETFs approved. The market odds of the SEC approving this ETF went from 6% to effectively 100% in the space of only two weeks,” added Pantera.
Recent goings on in the crypto regulatory space and the broader blockchain universe indicate politicians may be doing no more than pandering to blockchain-enthused voters. There are healthy doses of accuracy and skepticism in that sentiment. But it’s clear politicians are awakening to the point that many young voters are supportive of blockchain and cryptocurrency. If the pandering results in improved policy support for blockchain, that’s a long-term positive.
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