Is Donald Trump’s Recent Support for Cryptocurrency Genuine or Opportunistic? Experts Weigh In
Presidential candidate Donald Trump has recently expressed his support for cryptocurrency and indicated that if he were to be re-elected, he would cease hostility towards it in the US. He stated, “If we’re going to embrace it, we have to let them be.” He even went so far as to tell the audience that if they like crypto, “you better vote for Trump.”
This is a significant departure from his previous stance on Bitcoin and other cryptocurrencies. In July 2019, he openly criticized them, describing them as “not money” and condemning their volatility and lack of intrinsic value. He also raised concerns about their potential to facilitate illegal activities such as drug trafficking.
The growing prominence of cryptocurrency has not gone unnoticed by the candidates. Coinbase reports that about 20% of American adults, or over 50 million individuals, claim to hold crypto. Markus Levin, co-founder of XYO Network, believes that this substantial figure has caught the attention of the candidates. He stated, “To embrace crypto and establish solid crypto regulation is not only a good election strategy but also a clever policy in general.” Levin believes that Trump’s seemingly positive approach towards the industry will attract a significant number of crypto community voters.
Jonathan Thomas, CEO of prime brokerage Blueberry, believes that Trump’s crypto-friendly stance will particularly resonate with voters who prioritize crypto as a single-issue matter. However, he notes that Trump’s talk on crypto will only have an impact if it aligns with other issues that these voters care about.
Despite Trump’s recent endorsement of cryptocurrency, there is skepticism surrounding his advocacy. NFT enthusiast Thorne Melcher considers his support to be “flimsy” and a departure from his previous negative remarks. Melcher points out that Trump’s authoritarian tendencies could eventually lead to a crackdown on cryptocurrency, given its potential to facilitate transactions that go against conservative policies. However, Melcher also notes that this does not imply that Biden is favorable towards cryptocurrency. Supporting Trump solely for the sake of crypto may not offer substantial benefits, and Trump himself is unlikely to gain much electoral support solely by endorsing it.
Trump’s newfound support for cryptocurrency appears to be a strategy to woo crypto voters away from Biden. Despite being a crypto skeptic in the past, Trump has now become an active participant in the NFT market, even selling NFTs featuring his mugshot. According to Stephanie Vaughan, co-founder of DeFi firm Veda, many individuals within the crypto community are inclined to support Trump or refrain from supporting Biden. Vaughan believes that the hardline approach taken by the Biden Administration against the industry is unworkable for many people in the crypto industry or those who are generally favorable towards it. Trump recognizes the significance of crypto as a factor for a considerable portion of voters and is making efforts to attract them away from Biden.
In conclusion, Trump’s recent support for cryptocurrency has garnered attention and raised questions about its genuineness. While his stance may appeal to crypto enthusiasts, skepticism remains regarding whether his advocacy is opportunistic. The upcoming election will reveal the impact of Trump’s crypto-friendly approach on voter preferences.