A sudden Trump Bitcoin attack is sending shockwaves through the cryptocurrency market. Trump is not a Bitcoin fan. Trump does not recognize Bitcoin as currency. — And, of course, Trump firmly believes that the world’s only currency worth using is the U.S. Dollar.
Trump is just forgetting one thing. Namely, that the world’s money laundering, drug trafficking and illegal activity currency of choice is the U.S. Dollar.
Trump Bitcoin Attack Deflects From JP Morgan Drug Bust
The Donald Trump argument against Bitcoin is the same one Craig Wright likes to use to promote BSV. Sadly, for Trump (and Wright), it only works if the people you are trying to convince have an IQ of five.
Just 24-hours before rallying against Bitcoin as the root of all evil, a JP Morgan cargo ship was detained by the U.S. carrying 18 tons of cocaine. Likely, though, Tump won’t be looking at draining the swamp on Wall Street any time soon.
Crying Foul Over Bitcoin Really Betrays USD Insecurities
JP Morgan drugs busts aside, all the recent Donald Trump attack on Bitcoin really does, is betray increasing worry for the longevity of the U.S. Dollar.
The U.S. Dollar is past its prime. — And has been for a long time. The dollar today is worth less than half of what it was in 1990. Todays USD is also backed in real-terms by nothing but $22 trillion of debt. Worse, the U.S. isn’t in any rush to diffuse its growing debt bomb.
Every few years, Congress votes to raise the U.S. debt ceiling. This allows the United States to get into more debt indefinitely. At present, the U.S can get away with this, thanks to the dollar being the world’s reserve currency. However, this will soon change. Moreover, when it does, America will enter the most catastrophic economic death spiral in the history of civilization.
How the USD Works
The U.S. Dollar is the world’s reserve currency. This allows the U.S. to bully other world governments into political and economic submission. The current crisis in Venezuela is a prime example of this.
Venezuela is one of the most resource-rich countries in South America. Resources are also easily accessible. The only problem? Resources like Venezuelan oil can’t be sold on the open market. The U.S. prohibits Venezuela from doing so, by prohibiting the use of the USD in trade.
Of course, people argue that the economic crisis in Venezuela is much more complicated. In reality, it’s not. If Venezuela was allowed to use the USD in trade, there would not be the crisis there is at present. It’s that simple.
American Economic Bullying Doesn’t Work Anymore
The good news for countries like Venezuela is that American economic bullying doesn’t work anymore. We see this with the U.S. China trade war. America tries to impose tariffs. China threatens to limit exports of resources critical to U.S. industry.
Several other countries are also tired of U.S. bully tactics. Because of this, the USD is increasingly sidelined for alternative payment and trading methods.
- Russia is using its economic might to encourage its trading partners to de-dollarize.
- China and Russia have already developed alternatives to the U.S. controlled SWIFT bank-messaging system.
- Shanghai in China is already home to a booming Yuan based futures trading market, worth $2.5 trillion.
- Several EU countries are developing economic tools to circumvent U.S. restrictions on trading with Iran.
At present, most Americans are blind to the implications of a world where the USD is no longer the worlds reserve currency. Neither are Americans aware that dollars in their pockets (in real terms) are already worth mere cents on the dollar. Make no mistake, though. The era of dollarized global trade is drawing to a close.
Bitcoin Vs. The U.S. Dollar
In a sense, Donald Trump is correct in asserting that Bitcoin isn’t a real currency. Bitcoin today is predominantly used as a store of wealth. However, Trump is wrong in suggesting that Bitcoin is mere air money.
Bitcoin is deflationary by design. Over time, increasing scarcity sees Bitcoin increase in value in a similar way to gold.
By comparison, the USD is inflationary. The USD decreases in value over time, as unbacked (though, increasingly debt-based) dollars are printed. This is why $100 today has the equivocal buying power of $30 in 1980.
The USD is currently burdened by $22 trillion of debt. By comparison, Bitcoin is completely debt-free.
By being deflationary and debt free, Bitcoin is arguably a much safer long-term investment than the USD. At least, that is what is apparent to anyone of average intelligence.
Will the Recent Trump Bitcoin Attack Affect Bitcoin Prices?
In India recently, Bitcoin started trading at a premium in the wake of news that India might soon move to ban cryptocurrency. Mirroring this, global Bitcoin prices surged slightly in the wake of Trump Tweets deriding cryptocurrency. This is because even potential bans on Bitcoin only serve to increase scarcity. — And thereby consumer demand in the process.
In the long-term, banning Bitcoin would also be counterproductive to the United States.
The days of other countries falling in step behind the U.S. are over. A ban on Bitcoin would only result in one thing. Namely, other countries becoming more crypto friendly to lure U.S. investors. At the same time, banning Bitcoin would see the U.S. forfeit being able to collect cryptocurrency taxes.
Given all of the above, it is unlikely that the recent Trump Tweets have teeth. If anything, they are likely a clever deflection of some kind on new Trump controversy.
Did you find this content insightful? If so, consider supporting OMGLitecoin.com using Bitcoin and Litecoin: