Last night the American president Donald Trump made himself heard again on the social media platform Twitter. This time he said he was not a fan of bitcoin (BTC) and cryptocurrency in general. Experts and analysts are now making themselves heard and are attempting to undermine Trump’s arguments with arguments.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
I am not a Bitcoin fan and other cryptocurrencies, it is not money, its value is very volatile and it is based on thin air. Unregulated Crypto assets can facilitate illegal behavior, including drug trafficking and other illegal activities …
That is what Trump said in one of his tweets this morning. The tweets he helped out this morning led to a lot of criticism from various experts and analysts within the crypto industry.
For example, the CEO of Morgan Creek Capital Management, Mark Yusko, said in a tweet why he disagreed with Trump:
Money is a medium of exchange for goods or services within an economy
Therefore #Bitcoin is Money
Some money is fiat, meaning it has no intrinsic value. That is, paper or metal used to create it is not worth much in terms of its value as a raw material.
That is USD
— Mark W. Yusko (@MarkYusko) July 12, 2019
Money is a means of exchange for goods or services within an economy
That is why #Bitcoin is money
Some currencies are fiat, which means that they have no intrinsic value. That is, paper or metal used to make it is not worth much in terms of its value as a raw material.
That is the USD
The well-known crypto-analyst Alex Krüger also made himself heard. He states that bitcoin is simply “what it is”:
Financial instruments need to be backed by something. Commodities do not. Bitcoin is a digital commodity, similar to gold in many ways. Hence, it does not need to be backed by anything besides itself. Bitcoin simply "is".
The "bitcoin is backed by nothing" argument is absurd.
— Alex Krüger (@krugermacro) June 10, 2019
Financial instruments must be supported by something. Commodities not. Bitcoin is a digital commodity, comparable to gold in many ways. Therefore it does not have to be supported by anything other than itself. Bitcoin is simply what it is.
The argument that “bitcoin is not supported by anything” is absurd.
Bitcoin and other cryptocurrencies cause concern among politicians, among others. The reason: nobody has control over the cryptocurrency thanks to the decentralized aspect of the technology. It is therefore not surprising that Trump has a negative opinion about cryptocurrency.