JANUARY 1st, 2024 | Devon Kash

Embracing Crypto Is A Winning Strategy

Denying the permanence and value of cryptocurrencies and blockchains will prove disastrous for politicians.

Cryptocurrencies and blockchains have emerged from the previous recession as a revolutionary innovation in financial technology, challenging the traditional monetary system. These digital assets have gained significant traction among younger generations, who are embracing their decentralized nature, security, and potential for high returns. In this context, the support from political leaders, such as Pierre Poilievre, not only validates the technology but also paves the way for its ongoing growth and adoption. More importantly, for politicians, accepting these technologies will become crucial in winning future elections.

Younger generations, often referred to as digital natives, have grown up in a tech-driven world where innovation is central to their lives. As a result, they are more comfortable with emerging technologies like cryptocurrencies. This comfort level stems from their familiarity with the internet, mobile devices, and social media. Cryptocurrencies offer unique features such as greater financial privacy, lower fees, real-time transactions, and an opportunity for independence from traditional banking systems. These features resonate with Millennials and Generation Z, who often have more complex financial lives and have suffered most from the aftermath of the 2008 financial crisis.

The most recent Bitcoin crash has caused a temporary drop in confidence among Canadians, but the cryptocurrency's resurgence is well underway. With spot ETFs nearing approval in the United States, and the halving imminent this year, prices are expected to surge in coming years.

Cryptocurrencies have partly gained popularity due to their price volatility, which presents an opportunity to generate high returns. This attracts young, tech-savvy investors looking to diversify their portfolios or make a quick profit. Further, the use of social media has amplified the virality of cryptocurrency and many young people have been able to learn about these digital assets through online communities, tutorials, and forums.

For younger generations, crypto is here to stay and will remain a permanent fixture, contributing to their views that politicians who reject crypto are too old and out of touch to be in leadership.

According to the Canadian Crypto Survey, a majority of crypto holders are people between the ages of 25 and 44 who are more likely to have attained a higher education. Further studies around the globe have shown that a strong majority of crypto buyers are Millennials (76%) and Gen Z (17%), while 94% of all crypto buyers are between the ages of 18 and 40.

Support from political leaders like Poilievre highlights the increasing legitimacy of cryptocurrencies as a viable form of money and investment. Poilievre, the leader of Canada's Conservative Party, has been vocal about his belief in the potential of cryptocurrencies, particularly Bitcoin. He has advocated for the removal of taxes on capital gains from cryptocurrencies and has emphasized the need for Canada to become a world leader in blockchain technology.

Politicians will need to see the potential in blockchain technology to keep themselves relevant.

Blockchain technology has the potential to revolutionize supply chain management by providing a transparent and immutable record of every transaction and the movement of goods. This would enable companies to track the origin, journey and authenticity of products, ensuring greater accountability and trust. By eliminating intermediaries and reducing fraud, blockchain-powered supply chains can streamline operations, enhance efficiency and promote ethical practices. The healthcare industry stands to benefit immensely from blockchain technology. The secure and decentralized nature of blockchain can improve the management and security of medical records, letting patients have control over their data and controlling the permission to healthcare providers when necessary. This would enhance privacy, reduce medical errors through accurate and up-to-date information, and enable seamless sharing of medical records across different healthcare providers, leading to more efficient and personalized patient care.

For democracy, blockchains have incredible value. Blockchain technology has the potential to revolutionize voting systems by ensuring transparency, security, and integrity in elections. By creating a decentralized and immutable record of votes, blockchains can prevent voter fraud and manipulation. It would provide voters with a verifiable and auditable trail of their votes, increasing trust in the democratic process. Implementing blockchain-based voting systems could lead to increased voter turnout, improved election integrity, and greater public confidence in democratic institutions.

By supporting cryptocurrencies and blockchain technology, Poilievre and other politicians like him recognize the benefits these innovations bring to the economy, society, and younger generations. They understand that this support will encourage growth and adoption, ultimately leading to increased financial inclusion, job creation, and technological advancements. Endorsements like this from political leaders can help address concerns around the regulation and oversight of cryptocurrencies. By establishing clear rules and guidelines, policymakers can foster trust in the system, protect investors, and minimize potential risks.

Politicians who rigidly reject cryptocurrencies and the underlying blockchain technology risk losing the support of younger voters. By dismissing cryptocurrencies, politicians are not only disregarding the preferences and interests of young voters but also ignoring the potential benefits these technologies bring to the economy and society. Younger voters are keenly aware of its numerous uses beyond finance, such as improving supply chain management, enhancing healthcare, strengthening voting systems, and more.

The rejection of cryptocurrencies signals a lack of understanding. Politicians who fail to acknowledge the importance of innovation, technological advancements, and financial inclusion will find themselves at odds with the priorities of younger generations.

The enthusiasm of younger generations towards cryptocurrencies showcases their desire for financial autonomy, independence, and high returns. The backing of leaders like Pierre Poilievre demonstrates an understanding of the potential for cryptocurrencies and blockchain technology to reshape the global economy. By promoting the growth of cryptocurrencies like Bitcoin, leaders like Poilievre are not only supporting young people's financial aspirations but also fostering innovation, economic growth, and technological advancements.

FIVE POINT SUMMARY

1. People under the age of 40 have embraced crypto, making it a permanent fixture in financial markets.

2. Crypto buyers are growing in numbers, despite recent declines, as prices regain momentum.

3. The technology used in crypto can be applied to supply management and elections, providing transparency and greater security.

4. Pierre Poilievre is the only current elected federal leader in Canada to publicly support Bitcoin and blockchain technology.

5. Politicians who attack or deny the legitimacy of cryptocurrencies will begin to lose large segments of support among the electorate.