Donald doesn’t really like Bitcoin, which according to him threatens the supremacy of the US dollar.
This is the only real argument of the former president, who does not appreciate that there is a competition between currencies. The experts, on their side, are struggling to agree on the issue.
Yesterday, the president of El Salvador announced that his country could be the first to adopt Bitcoin as a legal tender.
This would be a small economic revolution, which does not fail to scare the most resistant to the idea. In response to this statement, Donald Trump was quick to give his opinion.
“Bitcoin, it just looks like a scam,” he reacted, adding that he “doesn’t like it because it’s another currency competing with the dollar” which he believes should be “the world’s currency.”
While one can admit that these words lack a bit of tangible argumentation, they are not without meaning for some. Justin Urquhart-Stewart, co-creator of Seven Investment Management, believes there is indeed a threat called Bitcoin.
He argues that the crypto-currency has “created a popular appeal without any real financial strength” thanks to its incredible “rise to prominence.”
Furthermore, he does not hesitate to accuse Elon Musk of playing with his influence to make the price of Bitcoin vary according to his will, arguing that he “acts in a stupid way”.
Is Donald Trump Right To See Bitcoin As A Threat?
“Bitcoin is dangerous because it tries to create a level of credibility to an unreliable and totally unfounded value,” Justin Urquhart-Stewart continues.
“Very often, unsophisticated investors are lured at the wrong time by something they think they can make a quick buck on.
To them, whatever it is, whether it’s Bitcoin or GameStop or AMC, it’s something to bet on”.
For all that, not all experts are of the same opinion. “I call bitcoin more of a security, like a stock or a bond,” says Neil Wilson, chief analyst at Markets.com.
“While it has appreciated massively, it is far too volatile to be a currency – it moves more than most stocks.”
Bitcoin can’t be a currency, he says, since it’s more often bought for storage purposes than for spending. No threat to the dollar as Donald Trump argues, then.
“The means by which America exerts its influence on the world is mainly the dollar, and it is not going to give it up, so I do not see Bitcoin as any kind of threat,” says Neil Wilson.
Especially since last month, the cryptocurrency has been on a steady decline, after China decided to stop accepting payments in Bitcoin.