Donald Trump Comes Down Hard On Cryptocurrencies Again
Immediate past US President, Donald Trump, is not done with his critical comments against Bitcoin and other cryptocurrencies. It would be recalled that back in June, the ex American president had taken a swipe at Bitcoin calling it fake and added his voice to the growing calls for regulation of the crypto sector. The latest critique from Trump sees him call Bitcoin ‘scam’ again.
Trump has declared that he is not a big fan of cryptocurrencies. This comes on the heels of the polemic statement issued by renowned broker, John Paulson, in which he termed Bitcoin ‘worthless.’ These recent critiques join the myriad of polemics issued against Bitcoin and other crypto assets. On his part, Trump has cited reasons for his critique unlike others, with one of them notably being that cryptocurrencies are a strong competition against the US Dollar.
Trump Cautions that US Dollar Should Have No Competitor
The former US president has on several occasions, including in his latest statement, warned that there should be no competition for the world’s reserve fiat currency. Trump also noted that investing in cryptocurrency is a potential disaster, when asked if he would ever give crypto investments a consideration. ‘We should strengthen and invest in our currency (US Dollar) and not in cryptocurrencies,’ Trump added.
Additionally, Trump declared that cryptocurrencies ‘may be fake since they have no origin,’ reinforcing his previous statement where he did not hesitate to tag Bitcoin a scam. At the time, Trump insinuated that Bitcoin was responsible for the decline of the dollar, leading to a downward spiral on the price of Bitcoin.
Available Data on Bitcoin and Dollar Faults Trump’s Arguments
However, a close observation of the performance of both currencies would reveal that there are a plethora of loopholes in Trump’s argument.
While flagship cryptocurrency, Bitcoin has grown by 305% since the last year, with a projection for more growth, the US Dollar is slowly trailing behind with just a 0.55% growth. This is an indication that the trust in the US Dollar has massively declined, especially now that there are serious concerns over inflation owing to excessive printing of the fiat currency.
Conversely, as US citizens look to escape inflation and an eventual devaluation of the dollar, Bitcoin has been touted as an alternative, thereby increasing the trust in the asset and other cryptocurrencies.
Trump’s calls for regulation resonates with clamors being made by popular Bitcoin critics like US lawmaker, Elizabeth Warren and Chairman of SEC, Gary Gensler. As of June, Senator Warren had issued an ultimatum to the SEC Chair to come up with regulations for cryptocurrencies.
Interestingly, the Infrastructure bill is more like a timely response to the regulatory calls, albeit it has been a subject of controversy among the US lawmakers. The bill also proposes to regulate crypto exchanges. As predicted, it is not likely that the proposed regulation will deter the growing interest in cryptocurrencies.
Owing to stringent tax provisions contained in the bill, industry experts have predicted that this may lead to an exodus of crypto traders and investors out of the US, similar to the migration of Bitcoin miners out of China.
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