Trump Comes Out Against Bitcoin, Market Proves Resistant
On July 11th, the President of the United States, Donald J. Trump, tweeted against bitcoin and other cryptocurrencies. While many might expect a negative outcome following a tweet from the “leader of the free world” against bitcoin, the market remained stable. In effect, bitcoin proves that its value is above the control of politicians. As well, it legitimizes bitcoin and other cryptocurrencies as his tweets show that traditional power structures are threatened by distributed ledger technology and it also raises awareness of the technology for the millions of people who will read Mr. Trump’s tweets and look into bitcoin for the first time.
Tweet 1: “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….”
Tweet 2: “….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National…”
Tweet 3: “…and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!”
In the wake of these tweets, as the Independent notes, “Trump’s comments appeared to have no negative impact on the cryptocurrency market….” And considering the high price volatility of bitcoin, “this represents remarkable stability for the cryptocurrency.”
Reactions to the president’s tweets were swift. Cameron Winklevoss, the Co-founder of Gemini, a cryptocurrency exchange and custodial service, replied, “‘Bitcoin is underpinned by math and cryptography. Like gravity, it works, whether you believe in it or not.’ – @winklevoss.”
Jeremy Allaire, the Co-founder and CEO of Circle, commented “Possibly the largest bull signal for BTC ever. Crypto now a Presidential / Global policy issue. People everywhere will embrace a mix of sovereign and non-sovereign digital currency.”
Founder and CEO of Digital Currency Group, Barry Silbert, opined, “Who would have thought that the one thing that could unite the left and right, bitcoin maximalists and shitcoiners, crypto investors and gold bugs…was President Trump?”
Justin Sun, who is set to have lunch with Warren Buffett because of his donation of over $4.5 million to the Glide Foundation, publicly invited President Trump to join them. Sun tweeted, “Mr. President, you are misled by fake news. #Bitcoin & #Blockchain happens to be the best chance for US! I’d love to invite you to have lunch with crypto leaders along with @WarrenBuffett on July 25. I guarantee you after this lunch, nobody will know crypto more than you!”
Overall, many seem positive about the president tweeting about bitcoin and cryptocurrency, even if it was in the negative. It has advanced the conversation to arguably the most visible platform which is that of the United States President. The price stability, as well, shows bitcoin is above politicians. While Congress might be able to call in officials at Libra to testify before them, there is no central actor to call in for bitcoin as it is a decentralized currency for peer-to-peer interactions in the truest sense.