Trump Slams Bitcoin in Tweet Storm: What Does It Mean? Anything?

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In a series of three Tweets, Trump went after Bitcoin. Does it matter?

Trump went after Bitcoin today.

I am not surprised, except by the timing.

Bitcoin Doesn't Care

I discussed Bitcoin on live national radio Tuesday night on Coast-to-Coast with George Noory.

I am a frequent Coast-to-Coast guest, typically for a few minute economic update about 4-5 times a month, going all the way back to 2007.

On Tuesday, George and I discussed the economy and upcoming recession for two full hours.

A caller asked about Bitcoin.

I replied that it was a free-market construct, but if governments or central banks ever felt that it was a threat, they could squash it.

The caller said it couldn't be done.

I disagreed. I stated that if governments ever felt threatened they would make up excuses to shut it down.

Fictional Reasons

I specifically mentioned money laundering, tax avoidance, and drug trafficking.

I added that the charges would mostly be fictional, but it would not matter.

Trump Surprise

I am surprised Trump mentioned this today.

It's just happenstance that a warning I made two days ago and it came into play today.

Bitcoin Doesn't Care

I do not think governments or central banks will shut down cryptos just yet. But the threat is real.

Wait a second, Bitcoin doesn't care.

Indeed it doesn't. Nor does the ocean or moon rocks.

Hash rates can go to the moon, or not. But if Governments will not allow conversion of Bitcoin into fiat and refuse to allow stores to accept Bitcoin, it would become worthless overnight.

Bitcoin will not care one bit.

Nor will Bitcoin care when governments ban cash and force everyone to use their own digital currencies. But those sitting in millions of dollars of profits will care when their profits suddenly vanish into thin air.

Best Case for Bitcoin

The best thing for Bitcoin, actually, would be if it did not display these tendencies to blast-and-crash because that provides governments another excuse to shut it down.

The battle cry will be: "We need to protect the consumer".

That's another reason I mentioned the other night.

When?

I have no idea. Nor does anyone else. I rather doubt the threat is imminent.

Yet, it could be, and it would not surprise me in the least.

Feelin' Lucky, Crypto Holders?

Why not?

After all: Bitcoin doesn't care.

Mike "Mish" Shedlock

Comments (33)
No. 1-16
thimk
thimk

I find it somewhat ironical , trump is touting the dollar as "stronger than ever" and the most dependable, yet his efforts are to devalue . bitcoin values/usage are a product of fed intervention, a search for a return on investment/principle and has supplanted gold to some extent as a "safe haven" . give the consumer 5% on savings and this s**t will stop.

Harbour
Harbour

This will drive liberals to Bitcoin - expect a price hike. Trump then outlaws it and liberals go broke....?

Tengen
Tengen

I doubt Trump has much of an opinion on cryptocurrencies in general, in which case he defers to his advisors. They probably told him it's bad because drug lords and rogue governments love it or something along those lines, rather than telling him that crypto could undermine their statist fantasies.

Trump has a few issues he genuinely cares about and I'm glad he got squeamish about a war with Iran, but he's generally easy to manipulate and people have had a few years to practice with him.

Sandu7
Sandu7

Regarding the timing: 30y T-Bonds had a very poor auction today. Inflation higher then expected. I would not be surprised if both the Fed and Trump will fight in tandem at some point to prop up the dollar. This might be a first collaboration (coordinated) between the 2 parties to send signals to the markets that some of the competing options to the dollar are not being viewed well. Powell was not either much in favor of the libra in his testimony.

Waiting for the day when Trump will say something about gold too. That will be a signed that they are really scared about the dollar’s fate.

Sechel
Sechel

i wait for the day we have a normal president who doesn't use twitter as a brain dump mechanism