The last few months have been hard on crypto and bitcoin investors…
After soaring to a new high of $64,863 in April, bitcoin has fallen around 50%. And the overall crypto market is down about 40% in that same period.
But while it might seem like investors are racing to get out of crypto… a new buyer has come out of the woodwork.
And just like the family offices, hedge funds, and public companies that bought into crypto before it… this buyer is more evidence of the mass adoption tidal wave we’ve seen overtake crypto.
It’s also one that could play a larger role in the adoption and acceptance of crypto in the months and years to come…
I’m talking about U.S. politicians and government officials.
So while you hear a lot of negative stories about politicians wanting to ban or limit bitcoin… behind the scenes, a number of them are actually buying it.
Senator Pat Toomey (Pennsylvania) filed financial disclosures on July 7 that show he invested in two of Grayscale’s crypto products. (Grayscale is a crypto-focused investment firm famous for its over-the-counter crypto trusts.)
Specifically, he bought between $1,000 and $15,000 each of the Grayscale Bitcoin Trust and Grayscale Ethereum Trust in mid-June.
These products give investors exposure to bitcoin and Ethereum without having to own the actual crypto. We don’t know why Toomey chose them – presumably because they’re simpler adds in a traditional brokerage account.
But it’s a positive sign for an asset that’s been called the currency of criminals.
And Toomey’s not the only politician getting his feet wet…
According to filings, U.S. Rep. Barry Moore (Alabama) bought Ethereum, Cardano, and meme crypto Dogecoin from May to June.
In total, he purchased $5,000 to $70,000 of these three cryptos, and he chose to own the actual currencies rather than an indirect investment like Toomey.
And then, there’s Senator Cynthia Lummis of Wyoming…
She revealed in a June interview that she owns five bitcoin (worth about $165,000 today)… and that her first purchase was at $330 in 2013.
Lummis, who’s state has been very crypto-friendly, went on to say:
I worry about having all of our retirement monies denominated in U.S. dollars. As part of diversification, having a very diverse asset allocation, you don’t have all your eggs in one basket. I think one of the strongest stores of value for the long run is bitcoin.
And while these are just three examples of public officials releasing their crypto holdings, others have made inroads in 2021.
Just look what’s happening across multiple states in the U.S…
Politicians Are Jumping on the Crypto Bandwagon
In Miami, Mayor Francis Suarez is intent on turning the city into a crypto hub.
For instance, he’s:
Pushed to pay municipal employees a percentage of their salary in bitcoin.
Sought methods to allow residents to make payments in bitcoin and other cryptos.
Advocated for accepting crypto for taxes.
And is even financing his reelection campaign with bitcoin.
He also bought bitcoin and Ethereum back in March.
In Colorado, Gov. Jared Polis wants to make his state the first to allow residents to pay taxes in crypto. And he was the first Congressional candidate to legally accept bitcoin as a campaign contribution.
Over in Texas, Gov. Greg Abbott signed the “Virtual Currency Bill” in June, tweeting that “Texas is open for crypto business.”
The bill makes Texas the second state (after Wyoming) to recognize the legal status of virtual currencies. It also allows crypto holders to store their currencies in state-chartered banks like they would with cash.
And in New York City, Democratic mayoral candidate Eric Adams has been vocally pro-crypto. He said New York would become the “center of bitcoin” under his leadership.
Across the federal, state, and local levels, there are 500,000-plus politicians in the United States.
So, there are surely more coming to crypto in the months and years ahead… And just imagine the influx when crypto regulation becomes even clearer thanks to new bills passed by pro-crypto politicians.
How to Stay Ahead of the Adoption Curve
Longtime readers know that at PBRG we focus on the big picture in crypto… We look at long-term mass adoption instead of short-term price volatility.
Here’s Daily editor Teeka Tiwari:
I don’t have a crystal ball. So, I can’t tell you exactly when we’ll see adoption reach 500 million, one billion, or eventually five billion.
But over a one-to-three-year period… I can tell you with a high degree of accuracy that we will see at least 500 million new crypto users…
My point is this: Rather than focusing on the day to day − which nobody can consistently predict − focus on the big picture.
In other words, you shouldn’t don’t focus on the short-term volatility or negative headlines. Instead, look at the big picture. And that’s mass adoption.
If you’re new to crypto, we suggest beginning with a small stake in bitcoin and Ethereum – around 1–2% of your overall portfolio is a good start.
Today, bitcoin is around $32,000. And Ethereum prices are roughly $1,900. But Teeka predicts bitcoin could hit $500,000, and ether $10,000, in the coming years.
So there’s still plenty of runway left.
Looking long-term, we see more U.S. politicians buying bitcoin, Ethereum, and altcoins… and passing bills that push crypto mainstream.
As crypto adoption ramps up… your best move is to own some, too.
Analyst, Palm Beach Daily
P.S. While crypto mass adoption continues to expand the reach of bitcoin, a long-term $30 trillion revolution in an underlying crypto technology is moving right along with it…
And at its current pace, Teeka believes it will become 25x bigger than bitcoin… like buying Amazon back when it was just a small online bookseller in Jeff Bezos’s garage.
Investments like this could have made you a millionaire many times over, starting with very little… but you had to get in early.
That’s why Teeka recently shared the details of his “No. 1 investment of the decade” in an exclusive interview. Click here to watch.