A day after a historical announcement by El Salvador the oft-lampooned Trump was critical of Bitcoin, calling it a scam.
Art of the Deal
It seems not even the crypto community is free of controversy stemming from the last U.S President, Donald Trump. The former one-term President and the person who authored the book ‘Art of the Deal’ is definitely not short of advice for the business community. These rants are often tweeted through his Twitter account that has been suspended for misinformation. He now finds audiences through the Fox broadcasting network, an old trusty ally that does not enforce strict fact checking onto his diatribes.
Trump was a media personality for a hugely successful reality television program called ‘The Apprentice’, and seems to subscribe to the idea that any publicity is good publicity. The image portrayed on the show was that of a shrewd, savvy and highly successful businessman. Mr. Trump in his usual style, hard hitting and full of conviction, had a lot to say about Bitcoin.
The embattled mogul said “Bitcoin, it 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.”
First, Bitcoin was labelled as a scam. The ensuing responses did nothing to explain how Mr. Trump arrived at the opinion, which is unsurprising considering the vague addresses given to the American public for the last 4 years. 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. Secondly, he calls for tight regulation against Bitcoin.
In his words, Trump said, “I think they should regulate them very very high, but the currency should be the 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
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.
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?
Source : bsc.news
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