Former President Donald Trump argued that bitcoin and other cryptocurrencies are “potentially a disaster waiting to happen” during an appearance on Fox Business.
When asked if he himself has invested in Bitcoin, Trump stated that he “likes the currency of the United States” and argued that cryptocurrencies hurt the US dollar.
The US “should be invested in our currency” rather than in cryptocurrencies, Trump claimed.
He highlighted that the nature and origins of Bitcoin and many other cryptocurrencies remain cloudy, stating: “They may be fake. Who knows what they are?””They certainly are something that people don’t know very much about. I have not been a big fan,” the former US President said.
On the same program in June of 2021, Trump stated that Bitcoin “seems like a scam,” and that there should be more regulations placed on Bitcoin so that it does not compete with the US dollar.
“I want the dollar to be the currency of the world,” Trump stated.
“I don’t think we should have all of the bitcoins in the world out there. I think they should regulate them very very high, but the currency should be the dollar,” Trump insisted.
The comments angered proponents of cryptocurrencies, some of whom have made millions playing the cryptocurrency market.
Even some of the former President’s most ardent supporters are entrenched in the cryptocurrency world.
After Trump’s loss to President Joe Biden in the 2020 election, a group of his supporters launched a cryptocurrency called “MAGACOIN,” which is a reference to Trump’s campaign slogan “Make America Great Again (MAGA).”
According to the most recent data, over 1,000 people have signed up for the cryptocurrency, but the vast majority only hold the 100 free MAGACOINs given when users sign up.
Trump is not the first person to criticize Bitcoin.
John Paulson, a billionaire who made his money investing in hedge funds and who predicted the huge housing crash in 2008, says all cryptocurrency, like bitcoin, is inherently “worthless” and “will go to zero.”
The investor, who was one of the few who foresaw the mortgage collapse in what has been referred to as “the greatest trade ever,” stated in a recent interview with Bloomberg Wealth that all cryptocurrency will “eventually prove to be useless.”
Cryptocurrency — especially perhaps Bitcoin, the most visible and controversial alternative digital currency of all — has been on a wild ride this past year especially, as business figures of the stature of Elon Musk denigrated it, implying that his “love affair” with cryptocurrency was now over.
Musk, once a vocal advocate for the use of Bitcoin and other cryptocurrencies, sent out a cryptic tweet on June 3, 2021 that caused the price of the world’s largest cryptocurrency to fall by 4.3%.
Although he later affirmed that his company, Tesla, would indeed accept Bitcoin as payment, the Musk incident left the cryptocurrency world reeling.
Now it appears that other magnates are openly questioning the value of digital currency as a whole.
Bloomberg Wealth asked in their Sunday interview with Paulson if he was a believer in cryptocurrencies.
“No, I’m not,” Paulson relied, adding “And I would say that cryptocurrencies are a bubble. I would describe them as a limited supply of nothing.
“So to the extent there’s more demand than the limited supply, the price would go up. But to the extent the demand falls, then the price would go down. There’s no intrinsic value to any of the cryptocurrencies except that there’s a limited amount.”