Former U.S President Donald Trump took a stance on Bitcoin on Fox News earlier this week. He believes it is a scam and wants the U.S dollar to stay the currency of the world. Here is what he had to say.
Former President Donald Trump went on air early this week to discuss his thoughts on the stock market and crypto. When asked by the host of the show if he had invested in Bitcoin, President Trump said:
Bitcoin, its just seems like a scam. And it seems like it’s competing against the dollar. I want the dollar to be the currency of the world.”
Trump hasn’t changed his position from previous comments in the past. He even told the then U.S. secretary of treasury Steve Mnuchin, “Go after Bitcoin.” Although nothing came to fruition on the matter.
Hours after Trump made his comments, the price of Bitcoin took a big fall of more than 8%. There’s no certainty that his attack on the digital currency caused the dump. Some say so, however, it’s hard to imagine any investors taking Trump as an expert to be listened to. However, the fact that he was a former president means he carries influence whether it makes sense or not. If a person in his position calls crypto and Bitcoin a scam, it brings more FUD to the already uncertain market.
Bitcoin, a threat to the U.S. Dollar
The problems which Trump doesn’t address are the issues with money printing. Right now the fact of the matter is, the dollar’s future isn’t looking too bright. And no one wants to be in a sinking ship. Trump is not ahead of the curve here. He’s backing the currency which more people are losing faith in everyday. Right now, only a small portion of the world population own Bitcoin and other cryptocurrencies. However, much of the U.S. population is waking up to the reality that money in their bank accounts might not be as safe as they’re told.
The new administration seems to have a similar stance on cryptocurrencies. They’re not very fond of crypto or Bitcoin either. In fact, the current U.S. President, Joe Biden, is set to make words about his thoughts on crypto and it’s relationship with ransomware attacks that have effected oil pipelines and supply chains. Some say the president will require a new form of regulation for crypto to battle the malicious attackers.
It appears that Trump is keeping his patriotic stance of having a strong dollar. And it is true, a big part of the U.S. economy depends on a strong dollar. However, the amounts in which dollars are being printed is not sustainable and will sooner or later weaken the fiat currency. As the dollar weakens it will be interesting to see if the U.S can hold the position of having the world currency. For now, the U.S. nothing to worry about, but in the long run it is possible that a digital currency could threaten the position of the dollar.