Donald J. Trump Hits the Headlines Again After He Slams Bitcoin on Fox Business

Donald Trump has denounced Bitcoin as a scam, stemming from its “competition” with the US Dollar as a currency.

By
Chung Yee
on
June 9, 2021
Category:
Blockchain News

Trump Coins BTC as a Scam

Former president Trump, who business dealings are under review by officials in New York City and state, offered his opinion regarding a less familiar topic, cryptocurrencies. He went on to call BTC a scam citing its threat and "competition" to the USD this past Tuesday.

In his usual style, hard hitting and full of conviction, he said,  "Bitcoin ... just seems like a scam. I was surprised - you know, with us, it was at $6,000 and much lower. I don't like it because it's another currency competing against the dollar, essentially it's a currency competing against the dollar."

Comments from the crypto Twitter verse were quick and unimpressed, to be kind. Users flocked to the Fox Business account remarking that it's a “good thing he is not president any more” and “Well, he’s an expert on scams, so he should know.” But regardless, Trump was first to air his opinion on Fox, blatantly coining BTC as a scam.

He continued on to call for tight regulation against Bitcoin, where he said, “I think they should regulate them [cryptocurrencies] very very high, but the currency should be the dollar”

 The ensuing responses in the interview did nothing to explain how Mr. Trump arrived at the opinion. It was disjointed but the point that was clearly conveyed was that the former President was disgusted by Bitcoin trying to compete against the American dollar.


Point Taken, Bitcoin Needs Tight Regulations 

Regulation enables institutional adoption. It provides an environment that is safe and compliant for mass participation, protecting both the public and the industry players. However the term used by Mr. Trump was ‘very very high’ regulation. It does seem to suggest using regulation to overrun a competitor rather than for the benefit of the public. The arguments presented by Mr. Trump seemed to hint of cynicism, speculating how an asset that was previously worth only $6,000 is now challenging the U.S. dollar. That in itself could be a justification to suspect fraud, which is why he immediately jumped the gun by calling it a scam. 

Bitcoin has existed since January, 2009. It is a 12 year lifespan for a scam to achieve the following accolades: 

i. Market capitalization of $630 billion at the time of writing

ii. Bitcoin is a recognized commodity that is taxable 

iii.  A country is now tabling a bill to adopt Bitcoin as a legal tender

iv. JP Morgan, Morgan Stanley and other financial institution are recognizing Bitcoin

v.  Bitcoin is openly traded in licensed exchanges around the world

vi. Bitcoin can be used to settle payments through major payment solution providers

The milestones of Bitcoin are indicative of an emerging asset class. The volatility of its price swings reduces with adoption, and it seems highly unlikely we will ever BTC trade for as low as $6,000 again. 


Taking Advice from Experts

In the financial market, the common folks often rely on expert’s opinions to steer their decisions. In this case, Fox Business turned to Donald Trump, a man that has a successful real estate empire to his name. However, Trump’s preoccupation with the dollar suggests a real fear of dismantling the current status quo, even if it would be the most effective path forward. Bitcoin is based on a trustless and decentralized network. There is absolute transparency and that would naturally translate to accountability. It is not open for manipulation and it is censorship resistant. These criteria itself is a recipe for a stable and reliable asset. 

Source 


Mr. Trump has built his wealth by having access to financial facilities that are readily available to the privileged, famously starting his business with a "small loan" of $1 million USD. People living in countries that are fighting famine and destabilization of their native currency are not accorded the same privilege. Bitcoin is their beacon of hope amidst national currencies inflating beyond repair and governments doing nothing to prevent the value from crashing. Like all narratives, there will be bias in projecting a point of view and that bias comes from the surrounding circumstances. Before we take the view of Mr. Trump to be an accurate view of a financial expert, let us reflect: are we able to distinguish an informed opinion from an uninformed one? 

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Chung Yee

Chung Yee has a legal background and has been involved in research works for the legal and compliance industry. Writing is his passion, centered on topics such as the blockchain and finance.

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