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- Trump claims Bitcoin to be a scam and a competitor against the US dollar in the global economy
- Bitcoin prices persistently fall, making the Trump interview a mere catalyst to the fall in prices
- Cryptocurrency adoption of other countries might act as a power drop for the dollar
Bitcoin prices have recently been stumbling at a constant drop, and former US President Donald Trump expressed his concerns regarding the cryptocurrency’s authenticity. A recent interview with a news media channel highlights Trump’s open criticism for Bitcoin as a rival factor competing against the US Dollar. The cryptocurrency market is a highly volatile one, making it the sole reason for not authorising Bitcoin into a legal tender in countries that recognise its trading.
Trump accelerates the fall in Bitcoin prices
The aftermath of Trump’s interview with Fox Business Network was not very opportunistic for Bitcoin. A 1.3% plunge in the price took place right after the interview. After a rapid increase and touchdown of $60,000 in the early months of 2021, the cryptocurrency’s price stood around $32,770 at 11 am in Hong Kong on Tuesday. Trump has always been against Bitcoin’s path of operations because it seems to him as a threat to the USD. he calls out Bitcoin as a scam that will only coerce the dollar’s value. Even in 2019, Trump spoke against the cryptocurrency and prices scooped by $10,000 just with a few statements. The former US President does not want dollar domination to affect in any way.
Cryptocurrency market appears to be manipulated
The power that affects Bitcoin prices seems to lie with a few people rather than the base of Bitcoin’s foundation, the people. A decentralised currency system is facing changes in its prices because of certain industrialists and market influencers in the world. The price drop started from the Month of May after Elon Musk announced that Tesla would no longer accept Bitcoin as payment because of environmental concerns. Bitcoin also faces turmoil as China continues to crack down on cryptocurrency trading in its territory.
The influence of specific Government actions, and sole entities like Musk, on the cryptocurrency market question the original objectives of Bitcoin that was meant to establish a decentralised line of currency that is moderated and regulated by its public users. The downside of Bitcoin poses a danger to various national currencies because of minimal regulation. The legalisation of the cryptocurrency as a legal tender is yet to be done by Governments, making Bitcoin insecure.
Developed countries accept Bitcoin
On the other hand, El Salvador is the first Central American country that is in the process to legalise Bitcoin to ease out the process of remittances for its citizens. Even countries in Africa, like Nigeria, prefer the use of cryptocurrency because of high conversion rates that affect the savings of the people. Developing countries continue to resort to better and cheaper financial modes of payments, making the dollar more vulnerable.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
