Experienced market participants know that politics and investing often intersect. With this being a presidential election year, related concerns are likely to be heightened. Likewise, there are some sectors and industries that are often more beholden to politics than others. Think energy, healthcare and technology, though for different reasons.
Compared to those groups, blockchain is young, but it’s increasingly becoming a political hot spot. That’s worth examining if for no other reason than that blockchain isn’t necessarily drawing political scrutiny. Rather, more candidates for high-level offices are voicing support for the technology.
With more politicians endorsing blockchain, it’s possible that investment implications are solidified, will increase or both. Political support of blockchain, particularly if it evolves in bipartisan fashion, could signal those in the know view the technology as having utility beyond the world of cryptocurrency. That's something investors have known about for some time.
Why Politicians Are Backing Blockchain
As noted above, this is a presidential election year and as usual, candidates from both parties are looking to woo young voters. Research firm Pantera pointed out that the majority of Americans are under the age of 40. And most of them are believers in blockchain.
“One of the American Presidential candidates came out strongly in favor of blockchain,” noted Pantera. “Very crafty move – as many of the young people who own crypto are so passionate about its importance to the world that they are single-issue voters. This stance seems likely to draw young people to a candidate that they might not have considered supporting before.”
