Donald Trump has embraced bitcoin and crypto, only for the market to crash in the largest financial collapse in history. Source: Karolina Kaboompics
Former US president and republic nominee Donald Trump — who once called cryptocurrency a “scam” — has changed his stance and embraced bitcoin and crypto. Just over a week later, and the market is experiencing one of its worst falls.
On Saturday, 27 July, Trump spoke at a Bitcoin conference, pledging to make the US the “crypto capital of the planet and the Bitcoin superpower of the world”, if elected.
Shortly after on 31 July, tensions rose between Israel and Iran, after Hamas’ leader Ismail Haniyeh was assassinated.
On the same day, Senator Lindsey Graham also put forward a joint resolution to authorise the use of force by the United States against Iran.
After meeting with bitcoin mining executives and experts last month, Trump took to social media to praise the bitcoin mining business.
“Bitcoin mining may be our last line of defense against a CBDC [Central Bank Distributed Currency],” Trump posted on 12 June.
“Biden’s hatred of Bitcoin only helps China, Russia, and the Radical Communist Left. We want all the remaining Bitcoin to be MADE IN THE USA!!! It will help us be ENERGY DOMINANT!!!”
Trump also floated the possibility of using bitcoin to pay off the US’s $35 trillion (A$53 trillion) debt, after US Treasury secretary Janet Yellen warned about the future of the US dollar.
“Crypto is a very interesting thing,” Trump told Fox Business. “Maybe we’ll pay off our $35 trillion dollars, hand them a little crypto check, right? We’ll hand them a little bitcoin and wipe out our $35 trillion.”
“For too long, our government has violated the cardinal rule that every Bitcoiner knows by far: Never sell your Bitcoin,” Trump said.
“If I am elected, it will be the policy of my administration for the United States of America to keep 100% of all the Bitcoin the U.S. government currently holds or acquires.”
It has been suggested that as a republic nominee, Trump’s public support of crypto and particularly Bitcoin — at a time when Israel’s conflict with Iran was significantly escalating — was irresponsible as cryptocurrencies often experience significant volatility during times of conflict or crisis.
The US market is bracing for significant volatility when it opens later this evening.
