There is general impression about President Donald Trump–other than his capricious ways–which is about his love for money and business. Crypto seems to have been one of his favorites. Now his administration’s fetish for everything crypto seems to be helping fuel a speculative mania that could cause havoc when prices collapse, according to some analysts. The worry is that when assets that have no tangible value (read ‘cryptocurrency’) soar–as they have after President Trump took office–they could spell trouble for the real currency of the economy (here read ’the US dollar’).
In the last one month, the Bitcoin has jumped almost 15 percent, the Wrapped Bitcoin 12 percent, Chainlink 23 percent, and XRP an insane 52 percent. Dogecoin though rose by a comparatively modest 6 percent. Bitcoin surged from around 70,000 dollars before the election to a record high of more than 100,000 dollars now.
Observers have likened the mood to a frenzy amongst investors who buoyed by an accompanying Ai boom seem to be betting on everything intangible as they would at the races. What seems to be fueling their enthusiasm is White House’s newfound love for crypto.
Crypto is, and has always been, a volatile proposition for investors. Correct that to ‘extremely volatile’ for the sake of precision.
Since it is volatile, its collapse is inevitable…the question is at what price would the big players cash out. The longer the frenzy is allowed to continue, the bigger the havoc it is likely to create for the smaller investors…who are huge in numbers. The criticism is directed towards Trump himself.
Trump’s ‘Make America Great Again’ vision was meant to focus on the tangible as against something as fickle as crypto. Even though Trump had promised he would make the US ‘the bitcoin superpower of the world’. After his inauguration, President Trump signed an executive order to promote US ‘leadership in digital assets and financial technology while protecting economic liberty’. He also tasked a working group with evaluating the creation of a national digital asset stockpile. One has to admit that Trump is a businessman, and his methods are different from convention.
The detour from convention comes from the US government encouraging alternative currencies–that are not even tangible–at a time when many other countries are trying to wean themselves away from the greenback (read ‘the US dollar’). Rivals like China would be encouraged to take the dollar even less seriously when they see the White House doing the same. China wants the Yuan to rule. If the White House is seen helping them, do it, how would they be making America ‘great’. Trump is treading dangerous ground, but that’s the way he’s always played.
Trump’s own businesses have extended their links with the cryptocurrency markets. Alongside his sons and longtime business partners, Trump backed a crypto platform called World Liberty Financial last year. This month itself he and first lady Melania Trump launched ‘memecoins’ — a type of cryptocurrency with no underlying business model or cash flow.
If that were not enough, Trump Media, in which the president owns a majority stake, has said that it would expand beyond social media and launch a financial services business that would invest up to 250million dollars into cryptocurrency and other assets.
Trump is a fierce nationalist, or so everybody believes, and maybe he has a plan to earn for America in every which way possible. If crypto is the currency of the future, then his directions may not be really wrong. Would be ‘in the long run’ or the ‘not so long run’ which reveals the results of his methods before the end of his presidency is the moot question here.
In the last one month, the Bitcoin has jumped almost 15 percent, the Wrapped Bitcoin 12 percent, Chainlink 23 percent, and XRP an insane 52 percent. Dogecoin though rose by a comparatively modest 6 percent. Bitcoin surged from around 70,000 dollars before the election to a record high of more than 100,000 dollars now.
Observers have likened the mood to a frenzy amongst investors who buoyed by an accompanying Ai boom seem to be betting on everything intangible as they would at the races. What seems to be fueling their enthusiasm is White House’s newfound love for crypto. Business Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
