Is Trump ‘Orange Pilled’? Decoding His New Pro-Bitcoin Stance

May 26, 2024 | Cryptocurrency | 0 comments

Former President Donald Trump has dramatically shifted from criticizing Bitcoin as a “scam” to pledging support for the cryptocurrency industry, raising questions about his motivations and the implications for U.S. economic policy.

Donald Trump’s sudden shift in stance on cryptocurrency, particularly Bitcoin, is raising eyebrows and questions. Once a staunch critic, labeling Bitcoin a “scam” that undermines the U.S. dollar, Trump has now pivoted to supporting cryptocurrency. What’s driving this drastic change? Has he been “Orange Pilled,” or is this just another instance of a politician telling voters what they want to hear?

Government Control and Dollar Hegemony

To understand this flip-flop, it’s crucial to recognize the broader context of government intervention and control. Historically, government policies have heavily influenced economic landscapes, often prioritizing the maintenance of dollar hegemony. This manipulation isn’t new; it’s a cornerstone of U.S. economic strategy to ensure global dominance. The narrative that everything beneficial comes from the government is misleading and overlooks the historical consequences of excessive intervention.

Government intervention has significantly shaped the economic landscape, ensuring the U.S. dollar’s dominance as the global reserve currency. Key historical actions include the establishment of the Bretton Woods system in 1944, which pegged other currencies to the dollar, cementing its primary reserve status. After the collapse of this system in 1971, the dollar transitioned to a fiat standard, maintaining dominance due to the robust U.S. economy and financial markets. The 1970s saw commodities like oil priced in dollars, further entrenching its global use. Additionally, the Federal Reserve’s provision of dollar liquidity during financial crises and the U.S.’s use of economic sanctions have reinforced the dollar’s centrality in international finance.

Despite a relative decline in the share of dollar reserves, U.S. government policies have preserved the dollar’s primacy. Deep and liquid financial markets and strategic economic actions have maintained its status. For example, the Federal Reserve’s swap lines with foreign central banks during crises ensure global access to dollar funding, underscoring the dollar’s global role. These combined factors highlight the enduring influence of government intervention in maintaining the U.S. dollar’s dominant position in the world economy.

Trump’s Initial Stance on Bitcoin

Former President Donald Trump’s original position on Bitcoin was clear and unequivocal. In a Fox Business interview, he branded Bitcoin as a “scam” that competes with the U.S. dollar. Trump’s comments reflected a broader skepticism among traditional policymakers who view cryptocurrencies as threats to the established financial order. His remarks came amid Bitcoin’s volatile market behavior, influenced by regulatory crackdowns in China and mixed signals from influential figures like Elon Musk.

Donald Trump initially viewed Bitcoin as a threat to the U.S. dollar and the established financial order for several reasons. He perceived Bitcoin as a competing currency that could undermine the dollar’s dominance. In a 2021 interview, Trump labeled Bitcoin as a “scam,” expressing concern over its potential to challenge the U.S. dollar’s status as the world’s primary reserve currency. As a decentralized cryptocurrency not controlled by any government, Bitcoin posed a challenge to the traditional financial system dominated by fiat currencies.

Additionally, Trump believed Bitcoin lacked intrinsic value and was a speculative asset without solid financial backing. He criticized its volatility and lack of regulation, aligning with the broader skepticism from traditional financial institutions and regulators. As president, Trump likely aimed to protect the existing monetary system and financial order, highlighting concerns about cryptocurrencies facilitating illicit activities such as money laundering and tax evasion. His initial stance was rooted in maintaining the U.S. dollar’s global dominance, distrust in Bitcoin’s value proposition, and apprehensions about the risks posed by decentralized cryptocurrencies.

The Cryptocurrency Debate

Experts warn that Bitcoin’s speculative appeal is dangerous for investors due to its extreme volatility, unpredictability, and lack of intrinsic value. Bitcoin prices can fluctuate dramatically without warning, making it a highly risky investment compared to traditional assets like stocks and bonds. For instance, Bitcoin’s price once plummeted nearly 11% within 24 hours after reaching a record high. This volatility, coupled with Bitcoin’s value being solely dependent on market demand, presents significant economic risks. Experts like Robert Arnott liken Bitcoin more to speculative items like art and fine wine rather than stable traditional assets.

Furthermore, Bitcoin’s regulatory uncertainty and technological complexities add to its risks. Governments may impose crackdowns or introduce their own digital currencies, undermining Bitcoin’s value. Additionally, Bitcoin transactions involve high fees and long processing times, creating barriers for investors. The risk of losing access to Bitcoin due to lost passwords or private keys, along with the lack of investor protections such as those provided by the Financial Services Compensation Scheme, exacerbates the dangers. Therefore, experts caution that Bitcoin’s speculative nature, regulatory risks, and lack of safeguards make it perilous for uninformed investors.

The New Pro-Bitcoin Trump

Despite his earlier criticism, Trump’s recent statements suggest a complete turnaround. He now promises to support Bitcoin and the broader cryptocurrency industry if re-elected. Trump’s newfound advocacy includes pledges to keep anti-crypto legislators at bay, protect the right to self-custody, and prevent the creation of a central bank digital currency (CBDC). He has also vowed to ensure that Bitcoin mining and related activities remain within the U.S., positioning the country as a leader in the crypto space.

Donald Trump’s shift towards supporting the cryptocurrency industry appears to be driven by several factors. With the 2024 US Presidential Election approaching, Trump is positioning himself as the pro-crypto candidate to appeal to the millions of crypto voters and secure their support. He contrasts his stance with incumbent President Biden, whom he accuses of wanting the crypto industry to “die a slow and painful death.” This strategic political move is aimed at garnering support from the growing crypto community.

Additionally, Trump’s personal involvement with cryptocurrencies and NFTs has made him more open-minded towards the industry. He launched his own NFT collection, which sold out quickly for $4.4 million, and his campaign has started accepting crypto donations like Bitcoin and Ether. Recognizing crypto’s economic and technological potential, Trump believes the US must lead in this field. His support for self-custody and opposition to CBDCs also appeals to libertarian-leaning voters who value financial freedom and decentralization. In summary, Trump’s pro-crypto position is a blend of political strategy, personal involvement, and acknowledgment of the industry’s growth potential.

A Political Play?

Trump’s reversal could be interpreted as a strategic move to garner support from the crypto community, which is growing in influence. His promises to support Bitcoin and free Ross Ulbricht, the controversial creator of Silk Road, play well to a base disillusioned with current governmental policies. By painting President Joe Biden as anti-crypto, Trump is attempting to position himself as the champion of innovation and freedom.

Donald Trump’s 180-degree shift on cryptocurrency is more than just a change in opinion; it’s a calculated political maneuver. Whether he has genuinely embraced the potential of Bitcoin or is merely leveraging it for political gain remains to be seen. However, this move highlights the ongoing tension between government control and the push for financial independence that cryptocurrencies represent. As always, voters must scrutinize these developments critically, recognizing the broader implications for economic policy and personal liberty.

Do not believe that one person, who is currently not in D.C., can defeat the huge bad wolf by themselves. Just like the end of his first term as president, which finished with a global health scare for which he approved experimental MRNA vaccines. There will probably be something big happen in the bond market or the banking system that will make him or anyone else in office quickly change their mind. Government is not there to give people choices or help them. The State’s job since it was taken over has been to keep people in line and get ready for the Fourth Industrial Revolution. The game plan made by the World Economic Forum, to which Trump and every other potential president has sworn loyalty instead of their own country.

It doesn’t matter what Trump or Biden say; what they will do at the end of the day or after the next planned incident will be exactly what their masters want, not what’s best for you and me.

 

Will Trump’s newfound support for Bitcoin and cryptocurrency gain him significant backing from the crypto community in the upcoming elections? Leave a comment…

 

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