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Donald Trump: Bitcoin not money, value based on thin air, facilitates unlawful behavior

Donald Trump: Bitcoin not money, value based on thin air, facilitates unlawful behavior

U.S. president Donald Trump finally expressed his views on Bitcoin and cryptocurrency, and the POTUS is not a fan.

Since his election to office in 2016, many pundits have speculated on his position on the predominant cryptocurrency. He finally aired his opinions:

President Trump reiterated many of the concerns that critics and the public have of the nascent technology. Well-known skeptics like economist Nouriel Roubini have decried Bitcoin for many of the same reasons denounced in the tweet, frequently calling it a “bubble” and a “scam.”

With Bitcoin’s use bootstrapped by adoption from Silk road, and with its widespread use in money laundering and tax evasion, it’s no surprise that President Trump is against cryptocurrency.

President Trump also attacked Facebook’s Libra cryptocurrency. As expressed by NEO Seattle development lead John deVadoss, corporations entering the traditionally government-controlled domain of money will run up against stiff resistance, as evidence by demands from Congress. It seems the POTUS does not deviate on this point:

Furthermore, with the escalating trade war with China and global economic uncertainty, it makes sense that officials in the U.S. government would want to maintain the dollar’s grip as the world’s global currency.

President Trump has not expressed how he will manifest his bleak outlook on BTC. It is uncertain whether his administration will enact regulatory restrictions or other hurdles to adoption in the United States.

This is not the first time an acting politician has derided Bitcoin. In May, California Democrat Brad Sherman called for members of Congress to join him in introducing a bill to outlaw cryptocurrency purchases by Americans. The bill has yet to garner noteworthy support.

President Trump’s position is in stark contrast to Democratic presidential candidate Andrew Yang, who is explicitly looking to get elected on a pro-cryptocurrency platform.

Cryptocurrency pundits react

Caitlin Long, an attorney and the co-founder of the Wyoming Blockchain Task Force, was critical of President Trump’s position. The State of Wyoming is paving the way for progressive blockchain regulation in the U.S. with laws that make banking, stock issuance, and doing business easier with cryptocurrency in the State.

TechCrunch founder Michael Arrington suggests that the President’s stance will push Democrats to the other end of the spectrum on cryptocurrency regulation, further polarizing an already partisan election.

Another influencer, Preston Byrne, a pro-crypto attorney who focuses on early-stage technology companies, called his voting habits into question following the tweets.

With an estimated 8 percent of Americans invested in cryptocurrency, President Trump may, once again, be alienating potential voters.

Donald Trump has the second-highest recorded disapproval ratings, at 67 percent, among presidents since Gallup poll began collecting data in 1937. Conversely, President Trump’s highest approval rating is the lowest among all presidents since Franklin D. Roosevelt, according to Gallup.

With the November 2020 re-election quickly approaching, in what is widely considered a likely tight upcoming race, this could cost the President precious votes at the polls.

Impact on the market

Overall, the markets seem largely unfazed by President Trump’s jab at the sector.

Bitcoin price chart by TradingView
BTC/USD by TradingView

Since the tweet, roughly an hour ago, the coin actually climbed another 1.3 percent. As Bitcoin advocate and developer Jimmy Song put it, this could be another case of the coin’s “anti-fragility,” or gaining value in the face of devastating events and bad news.

That said, the news may have a greater impact as word spreads, so the verdict is still out.

This story is developing, check back shortly.

Bitcoin | BTC

Updated: Jul 11 at 6:53 pm PDT
$11,419.29
-4.69%

Bitcoin, currently ranked #1 by market cap, is down 4.69% over the past 24 hours. BTC has a market cap of $203.41B with a 24 hour volume of $28.48B.

Chart by CryptoCompare

Bitcoin is down 4.69% over the past 24 hours.

Filed Under: , Bitcoin, People of Blockchain, Price Watch
Mitchell Moos

Mitchell is a software enthusiast and entrepreneur. In addition to writing, he runs a non-profit that teaches people about the blockchain. In his spare time he loves playing chess or hiking.

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