Bitcoin will thrive under the certain uncertainty of a Donald Trump presidency

 
Tim Heath
US-IT-FINANCE-BITCOIN
Bitcoin is the best known of cryptocurrencies to emerge in the last few years (Source: Getty)

The world woke on Wednesday morning to news that billionaire Donald Trump swept to power in an election result that will go down as the most surprising in American history.

At first, markets were hit hard, though the dust has already begun to settle as investors acclimatise to the soon-to-be White House resident.

The election, in particular the unexpected outcome, showed just how exposed markets and currencies are to geopolitical risk.

Some might be asking if there is a currency that could deflect political pressure and external influences in the wake of a shock event and that is more broadly immune to capital controls and manipulation.

Read more: Bitcoin jumps four per cent as Trump elected to the White House

But we already have that currency. Bitcoin, the best known of the world's cryptocurrencies, has a reputation for providing stability, not just on a day-to-day basis but at times of volatility.

Despite hacks, competition, turmoil and a negative perception from some quarters, it has thrived of late, because bitcoin is peer to peer, meaning there is no intermediary.

Certain uncertainty under Donald Trump

Bitcoin also thrives in uncertain times, and the only thing certain about the Trump Presidency is uncertainty.

Prior to the result, industry analysts were speculating that a Hillary Clinton win would have little impact on bitcoin in the longer term as she was widely expected to continue the work of the Obama administration, with status quo being the order of the day.

Read more: Bitcoin still "currency of choice" for cybercriminals... for now

But Trump's victory throws the cat among the pigeons and in doing so strengthens bitcoin as a currency and as a catalyst for change when it comes to finance, banking and the use of cold, hard cash.

The markets will undoubtedly rise from the discarded campaign banners and tickertape and may even be bolstered by a businessman helming the most powerful democracy in the world.

But it is only a matter of time before the world is rocked by another shock event – a second Scottish referendum, perhaps. Or another country pulling out of the EU.

Read more: Bitcoin price almost fully recovers from Hong Kong hack-driven losses

Maybe Theresa May will be blocked from triggering Article 50 by the courts or Parliament itself. Something will happen – it always does.

But through it all bitcoin will remain isolated from the chaos, riding the peaks and troughs in a world where volatility is rife.

It may be seen as sitting in the shadows at present, but over time it will be brought into the light and become a mainstream currency just like the pound and the dollar. And Trump might just be the man to help make that happen.

Related articles