The Perception of 'Bad' vs. the Illusion of 'Right'... A Skewed View on Bitcoin [Hankyung Column]

Minseung Kim's ₿itcoin

Trump's Election, the End of Liberal Order

Trump's victory was anticipated. From a month before the election, pollster Nate Silver accurately predicted the outcome of the vote. However, mainstream media and pundits dismissed this as 'impossible,' and Trump's support or election predictions were labeled as 'anti-establishment' actions until the election day.

British political scientist John Gray commented, "Trump's re-election signifies a historical turning point worthy of comparison with the collapse of the Soviet Union and its ideological consequences. It is the definitive end of the liberal world order."

The Democratic Party, which represented 'liberal,' unjustly oppressed many things under the pretext of 'right,' and in the process, defined the opposition as 'evil.' National security, race, gender issues, and more importantly, crypto became the core battlegrounds of this election.

Warren's Anti-Crypto Army

The Democratic Party's anti-crypto army, led by Senator Elizabeth Warren, is a prominent opponent of digital assets. A renowned lawyer from Harvard, she publicly announced the formation of an 'anti-crypto army,' advocating for strong regulations across the industry through measures like digital asset tax inspections. The Biden administration and SEC's strong regulations, the support of mainstream media, and the 'anti-Trump' base all contributed to Warren's Democratic Party's anti-crypto policy, which sparked controversy alongside 'political correctness' and 'wokeism.' Even within the Democratic Party, there were voices of self-reflection regarding the SEC's overreach.

The Reality of the U.S. Democratic Party

The Democratic Party was known for its support base of immigrants and minorities, but many of them overlooked the reality that they actively use crypto for remittances. For immigrants who frequently send small amounts back home, using stablecoins for remittances was cheaper and faster than traditional banks. However, the Democratic Party and Warren criticized crypto remittances as tax evasion or terror funding, taking a judicial approach to condemn evil. The Democratic Party's anti-crypto policy, which equated remittances with terror funding, caused significant inconvenience to immigrants and minorities.

Warren also took a strong stance in the Terra Luna and FTX incidents. However, the victims of the Terra Luna incident were not the greedy ones who fell into the scam of Ponzi schemes. Ordinary citizens, amidst job scarcity and inflation, were the ones who expected the promised 19% annual yield from Terra UST and Anchor Protocol.

FTX is no different. As the pandemic caused massive inflation, Americans chose virtual assets as a hedge against rising prices, and many deposited their funds in FTX, which appeared as a reputable exchange run by a famous American entrepreneur. The SEC was aware that many Americans were investing in Terra Luna and FTX. However, they maintained a 'partially uncertain' stance for a long time, blocking their overseas operations and Americans' use. After the 2022 crypto industry downturn and the 'contagion' event where virtual asset prices plummeted, the U.S. government and the Democratic Party should have acknowledged their responsibility to protect American investors. Instead, they used the argument that 'crypto is evil' to justify their actions, engaging in investment battles against evil and judicially condemning evil.

Is it a Just Investment or an Oppressive Investor?

Defining absolute evil and fighting against it is a clear and straightforward way to gain clarity and justification. This was the case in medieval Europe with religion, and during the Cold War era with ideology. However, in modern society, good and evil are not as clearly defined as black and white.

When an investor fights against genuine injustice, that struggle is just. However, if the target of the struggle is not injustice, it is merely a fight, and if a large investor uses power to fight, they themselves become the unjust and great evil.

The U.S. Democratic Party did just that. As the ruling party, the Democratic Party, along with the administration and SEC, condemned crypto as 'unjust,' and they themselves became unjust. The U.S. crypto industry and investors resisted this in the most American and legal way. They supported the Republican Party in every state as a countermeasure, and eventually, both the White House and the Senate were taken over by the Republican Party, which was labeled as 'Red Swing.'

Shift the Focus

The core of the Democratic Party's defeat is the failure to shift focus. As the ruling party with strong power, they acted as 'investors fighting against great evil' until the end, believing that their actions were just. This caused backlash and fatigue throughout society. When the position changes, the perspective on the world should also change, but the ruling party failed to let go of the opposition's focus.

In all aspects, including gender, race, and crypto, the Democratic Party and Harris's camp failed to read the difference between four years ago and now. Harris only pointed out Trump's faults, failing to present reasons why she should be president. Biden also failed to read the minds of changing voters over four years.

Korea is no different. Even now, with over 7.78 million virtual asset investors, the perspective is similar to the emergency measures of 2017. Virtual assets are 'bad,' and there is contemplation on how to regulate and stop bad actions. The financial authorities and the judiciary are still stuck in the easy perspective of investment against evil and judicial condemnation of evil. Biden's administration lacks political integrity and is no different.

Politics is not a battle or struggle, but a proposal and presentation of a plan and future that benefits all members of society. Despite criticism from elites and media, the fact that American voters chose Trump is significant. Over seven years, the political landscape in the U.S. and the market environment in Korea, and the status of virtual assets have changed significantly. Now, the shift in focus is urgent.

Minseung Kim Column Research Center is...

The Column Research Center is led by a member who is responsible for the establishment of the Column Research Center. They easily unravel complex events and concepts emerging from the blockchain and virtual asset ecosystem, helping people with different perspectives understand each other. They have experience in project planning and software development for blockchain projects.

▶This article is an external contribution column introduced to provide various perspectives to subscribers of the encrypted investment newsletter and is not the position of the Korea Economic Daily.

Reporter Hyun Jomi mwise@hankyung.com