The Encryption Order of the Trump Era: Strategic Reserves and Power Games

Preface

On the political stage, Trump has demonstrated a management style similar to that of the reality show "The Apprentice." Early in his term, he issued "termination orders" to various parties. How will cryptocurrency, as an important player, develop in the following term? To answer this question, we need to first gain a deeper understanding of this leader's way of thinking.

1. The market likes surprises, but it must be under my control.

Trump's negotiation philosophy is centered on "controlling the rhythm" and "creating surprises." These two strategies not only helped him build a business empire but also set the tone for his political career.

Looking back at Trump's business career, we can see how he employed these strategies. In the 1976 New York Hyatt hotel project, he created a sense of urgency by threatening to walk away from the negotiations, successfully raising government subsidies from $40 million to $120 million. In the 1983 Trump Tower project, he suddenly sued the contractor when the project was nearing completion, ultimately lowering the construction costs by 23%. The 1985 Atlantic City casino acquisition was the pinnacle of his "raid strategy," where he made new demands at the last moment, forcing the other party to accept unfavorable terms.

This highly coercive negotiation strategy reflects the "deal-making rules" advocated by Trump and is also part of his controversial "destructive survival tactics."

Recently, Trump's talks with Ukrainian President Zelensky once again showcased this strategy. He reached a consensus with Russia before the talks and then raised high repayment demands during the discussions, ultimately leading to a breakdown in negotiations. These actions align with his consistent bargaining pattern: proposing targets far above expectations, applying pressure on opponents through various means, maintaining unpredictability to make it difficult for opponents to anticipate his moves, and skillfully using the media to amplify the impact of events.

However, the reactions from multiple countries indicate that the approach to dealing with this strategy seems quite simple: refuse to trade, refuse to negotiate.

2. Strategic Reserves

Trump recently announced on social media that XRP, SOL, and ADA will be included in the "encryption strategic reserves," while emphasizing the core position of ETH and BTC. This news has triggered market fluctuations, with the prices of various cryptocurrencies rising sharply. However, this move has also sparked many doubts and speculations.

Combining Trump's "rules of the deal", we can speculate some possible objectives:

1. By proposing various cryptocurrency reserves, pave the way for the "suboptimal" option of the U.S. accepting at least guaranteed BTC strategic reserves.
2. Use the presidential identity and influence to continuously create expectations of "strategic reserves" and control market trends.
3. Strive for more influence and rights for the Trump family in the encryption field.
4. Behind "White House Select" may lie a complex network of interests.
5. Seek to convert the seized encryption currency into strategic reserves or issue related bonds through public opinion pressure.
6. There may already be plans to promote the large-scale application of the selected public chain in various fields, making its tokens a true "material reserve".

3. Destructive Survival

Trump's decision-making style is heavily influenced by his father, tending to view interpersonal relationships as a "zero-sum game." This mindset is particularly evident in his business and political career, manifested as a survival rule of attack, destruction, and suppression.

Although cryptocurrency supporters often cheer for the "crypto president," it is important to be aware that Trump's "America First" and "Family First" ideals may extend into the crypto world. He may adopt a tariff-war-like approach to ensure "America First" in the on-chain world:

1. Prioritize support for U.S. projects through ETFs and strategic reserves.
2. Tax incentives may be provided for American projects, while taxes may be increased on less favored projects.
3. Provide privileges for family projects, such as regulatory sandboxes and targeted support.

In the future, Trump may take more measures to promote the "Americanization" of encryption. In this case, we either choose to ally with him or choose to "refuse to trade".

4. The Shadow of DOGE

The rise of Dogecoin is an interesting case in the world of cryptocurrency. Originally created as a parody of Bitcoin, this project, driven by Trump's friend Elon Musk, once became a top ten cryptocurrency by market capitalization. In this process, we saw how cryptocurrency evolved from a tool of rebellion to a part of the mainstream.

The encryption world seems to be repeating the fate it initially sought to combat. Bitcoin has transformed from "a blade against centralization" into a new vehicle for American hegemony. The flow of funds closely follows Trump's statements, shifting from BTC to Trump, Melania, and then to the so-called altcoin strategic reserves. When the rebels become part of the establishment, cryptocurrency seems to have failed to escape the fate of "the dragon-slaying youth ultimately becoming the evil dragon."

5. Double-edged Sword

Setting aside personal interests, Trump is undoubtedly a legendary figure in the history of American politics and business, and he is likely to push BTC to new heights. However, under the interference of power and high regulation, the space for innovation in encryption may be limited.

As Ethereum founder Vitalik said, when the cryptocurrency space is filled with high-risk speculative behavior and it is regarded as the "best product," does this really align with the original intention of encryption?

In the next four years, the so-called "best projects" may be limited to those mentioned in President Trump's tweets. The development of encryption driven by Trump is a double-edged sword that could lead to the fragmentation of encryption into multiple camps such as traditionalists and American-style proponents. The past battles of public chains may be replayed on a larger scale.

Under Trump's strong strategy and immense influence, this game may be exceptionally intense. However, it may also be a transformation that the world of encryption must undergo.