Title: Trump Likes Crypto: Just As Long As It's For Grifting
Author: Trey Walsh, Bitcoin Magazine writer; Executive Director of TPBPod
Translator: Ashley, BlockBeats
Editor's Note: The article analyzes Trump's motivations for entering the cryptocurrency space, revealing the essence of his profiteering through the $TRUMP Bit. The author criticizes the hype around the Bit, pointing out that Trump is more focused on short-term gains and self-promotion, neglecting the core values of Bit. The author calls for attention to the decentralization and practical applications of cryptocurrencies, rather than speculative trading.
Behind $TRUMP
When $TRUMP launched on Friday night, no one was surprised, or at least they shouldn't have been. Trump has always thrown himself wholeheartedly into ventures he believes can make money, but these ventures often end in disaster. Some of his failed attempts include Trump Air, Trump Vodka, Trump Steaks, Trump University, Trump Magazine, Trump Plaza Hotel and Casino, Trump Mortgage, and Trump Board Game. Now, cryptocurrency has become the new frontier he has decided to venture into.
I have written about and extensively discussed Trump's foray into the crypto space in an effort to win votes in the recent election. This attempt has been quite successful in many ways. At the Bit conference in Nashville this summer, Trump made some notable remarks to garner support for his presidential campaign, including declaring that the US will become the "Bit capital of the world and a Bit superpower," promising to fire Gary Gensler, and hoping that all remaining Bits will be mined in the US (which is concerning from a decentralization perspective and highly unlikely in reality). He also stated that on his first day in office, he would commute the sentence of Ross Ulbricht. If he actually does this, I will be the first to applaud him. (For more information on this, I recommend watching the recent Reason documentary on why Ross should be released.)
Cryptocurrency is Trump's next battlefield, combining several elements he loves in business deals - quick and easy money, self-promotion, "America First" messaging, and virtually no bureaucratic obstacles. So, what is $TRUMP?
It is based on the Solana Blockchain, with a total supply of 1 billion Bits. Initially, 200 million Bits were available for circulation, with the remaining 800 million held by CIC Digital, an affiliated company of the Trump organization, locked for three years (meaning the Trump family owns 80% of the supply...). After its launch, the market capitalization of $TRUMP skyrocketed, being touted as a means for supporters to express their alignment with Trump's ideals, rather than an investment opportunity. In my view, this is nothing more than a pump-and-dump self-enrichment scam, an unethical act, and the "fans" who participate in it are incredibly foolish.
Crypto Policy Outlook: Speculative Attributes vs. Core Values
As Monday's inauguration approaches, we are entering uncharted territory, where Trump may sign executive orders related to Bit and cryptocurrencies. Now, with his confidence from serving as president, without legal concerns, and with a group of supporters I truly believe will back him in any of his actions, as he famously said: "I could stand in the middle of Fifth Avenue and shoot somebody, and I wouldn't lose any voters, okay?"
Some of his actions may benefit the Bit industry and its supporters in the US. But many of his actions may also benefit the broader cryptocurrency space, which is rife with pump-and-dump scam Bits and get-rich-quick schemes designed for the wealthy and lobbyists. This speculative and dumping cryptocurrency environment, along with his meme Bits and NFTs, aligns perfectly with Trump's logic. In fact, I'd bet he genuinely believes the purpose of cryptocurrencies is just that, while knowing little about Bit. Trump has repeatedly stated that he "loves playing with cryptocurrencies," and at the end of his keynote speech at the Bit conference this summer, he said, "Have fun, whether it's Bit, cryptocurrencies, or anything else."
Trump's experience and views on cryptocurrencies and Bit revolve around fun and easy money-making. But for many in the Bit space, we are fighting for much more, including Bit as a censorship-resistant digital currency, digital gold, self-custody and privacy tool, and a powerful tool for human rights. This is not gambling... this is challenging the dollar and central bank rules of the future currency.
If Trump truly begins to understand this, based on his past record and statements about Bit, he is likely to oppose such Bit usage. Or perhaps he knows to some extent what Bit is, and would rather promote "fun" meme Bits, or perhaps even the concept of Bit as digital gold, but not go beyond that. After all, in 2021 he explicitly stated: "Bit, it just looks like a scam. I don't like it because it's another currency that's competing against the dollar." He also added that he wants the dollar to be the "world currency." On this concept, I strongly recommend following Mark Goodwin and his research on the Bit-dollar.
Trump wants you to keep playing with cryptocurrencies, funneling funds to his organization, but he is unlikely to support anyone using Bit to compete with the dollar, bypass the traditional financial system, or use privacy tools (especially if you are his opponent or one of what he may someday classify as "left-wing/woke" reasons, perhaps even classifying our non-profit Progressive Bit People as such a reason). I will continue to promote Bit as a resistance currency, and I hope you will join me, rather than endlessly gambling on cryptocurrencies "and whatever else you're playing with."
