Trump went after Bitcoin today.
I am not surprised, except by the timing.
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
....Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National...— Donald J. Trump (@realDonaldTrump) July 12, 2019
...and International. We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!— Donald J. Trump (@realDonaldTrump) July 12, 2019
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.
I specifically mentioned money laundering, tax avoidance, and drug trafficking.
I added that the charges would mostly be fictional, but it would not matter.
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.
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?
After all: Bitcoin doesn't care.