Bitcoin is not dependent on who wins the US election, as the currency will shrug off market uncertainty regardless of who wins, says Jamie Darnley, the founder of Darnley Mining.
"The market just wants to know that there is a winner," Darnley told Bitcoin News in an interview on Thursday.
He said while most investors expect a hung election, or an election in which neither party has a majority, it is not important who wins because most risk assets will see a big rise.
In the long term though, however, a Joe Biden victory is better for Bitcoin and gold because that implies an unprecedented level of government spending, Darnley said. "I say Democrats are generally better for inflation hedges, but as long as there's a clear winner at some point, everything's will go higher," Darnley said.
Bitcoin has surged more than 5% this week, and is up almost 80% year-to-date, putting the digital currency within reach to its June 2019 high of $13,880.
Bitcoin benefited from a number of great headlines last week. PayPal said it would allow users to buy, sell, and transfer Bitcoin, investor Paul Tudor Jones called it the "best inflation trade," and tech firms including Square, Microstrategy, and UK fintech Mode said that they had bought Bitcoin as part of their cash reserves.
Darnley, who has been in the Bitcoin Mining business for 5 years, said a billionaire investor like Tudor Jones investing in Bitcoin won't ignite a bull market, but it has without a doubt lowered the fear factor of entering this market.
"Most people on Wall Street don't want to be the first and don't want to be the last," he said. "Once there's a precedent, the floodgates for the rest. I don't think that alone suffices to start a bull run , but I think it does suffice to increase the total addressable market for Bitcoin."
Darnley said fintech firms are disrupting traditional finance , as they have the ability to move much faster on offering services for Bitcoin.
"Look at the share prices of old fashioned banks versus fintech this year and see how high PayPal, Square and others are doing relative to JPMorgan, Bank of America, and Goldman Sachs," he said. "It is a bigger negative to banks than it is a positive to bitcoin, as you're now offering a service that banks can't provide quickly," he said about the potential of fintechs.
Darnley does not feel Bitcoin is a safe-store alternative to the US dollar, but said it can provide a hedge against inflation. https://genesismining.co.uk
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