Bitcoin is a bonus on the production of abundant electricity.
In his comments to Bitcoin, Cramer asked about the new administration's plans for the crypto and in his question drew a comparison to the US strategic oil reserves. Will the White House push for something like this?
“I think so,” Trump replied. But the rest of his answer really showed an understanding of the importance of the cryptocurrency sector to the world economy in terms of first principles.
This may be the influence of Elon Musk, a technology engineer and government efficiency consultant, who says, “I think it's important to reason from first principles, not by analogy.
Trump talks to Jim Cramer about crypto
“We're going to do something great with crypto,” Trump told Cramer.
Because we don't want China or anyone else – others have accepted it and we want to be the head. We want to be the AI leader. We are ahead of AI,” he added.
Trump then said something that proves he's not just a headline reader doing what Elon Musk or his son Barron are telling him, he's a crypto-former:
“And we need to produce large amounts of electricity. You know this,” he explained. “It's unbelievable when you think we need more than twice what we have. But we can do it.
The history of the future of the 21st century
Since the 1970s, solar panel prices have fallen on a parabolic trajectory similar to Moore's Law for computer microchip prices. But electricity can be more plentiful and cheaper.
Bitcoin is not just a new internet currency. It's also an industry with an immediate incentive to develop cheap, abundant, renewable energy production.
As the chip race for more efficient Bitcoin mines reaches its state of the art, the only thing left for miners to compete with is the cost of electricity. They are ready to compete for profit with this cost line in their business model.
Smart electricity grids scaled by blockchain platforms are showing more opportunities to exchange with currencies.
Trump Position Bullish for Crypto
Before his January 20th inauguration, Trump delivered big wins for the blockchain cryptocurrency sector.
His nominations for Treasury Secretary, SEC Chairman and White House crypto “czar” are huge signals for prices on crypto exchange markets.
Two have strong ties to cryptocurrency, and one (Trump's pick for SEC chairman) supports the industry, Mr. Trump said.
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