A few days ago our ever classy and composed president sent out a tweet slamming cryptocurrencies - specifically bitcoin and Facebook's new coin Libra - stating that if they want to become "new" banks, they will need to be submitted to all regulations and banking charters.
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... 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... 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!
Normally this kind of "negative press" would be something to roll our eyes at - and perhaps worry that it will perpetuate the public opinion of crypto being a "thing from the dark web for criminals" or other such nonsense. Responses to his tweets have been blowing up on social media with mixed reviews.
A tweet from the CEO and Co-founder of Coinbase - Brian Armstrong put it into a different perspective though.
Achievement Unlocked
He made the observation that getting this type of attention from a sitting US president is actually a massive step towards crypto adoption.
Achievement unlocked! I dreamt about a sitting U.S. President needing to respond to growing cryptocurrency usage years ago. "First they ignore you, then they laugh at you, then they fight you, then you win". We just made it to step 3 y'all.
Research Shows...
Research shows that you have to hear something a minimum of 7 times before it begins to "stick" in your brain. Although this is not a "positive" tweet about bitcoin and cryptocurrencies - it is another point of recognition for people. Perhaps they become more familiar with the term by hearing about it in the news, then their neighbor brings it up in conversation, then their co-worker mentions he just bought his first chunk of bitcoin.
Even if all of these interactions are not positive - they all still add up to people becoming more familiar (read comfortable) with the idea of crypto. Most people tend to follow "social norms" and shy away from things that feel fringe or strange. By the terminology becoming more familiar in everyday vernacular - it opens the door for normalizing the movement in the eyes of everyday users.
The US Dollar Will "Always" by the Dominant Currency of the World? What a Joke...
Such an ignorant statement - although not all that surprising coming from Trump's mouth. Sadly, there are many people that truly believe this and actually have no idea how currency creates and holds value. If you asked most people on the street why those pieces of paper in their hands were valuable - they would have no idea how to respond.
That is one thing I'm excited to see a shift in the social culture as the crypto movement continues. My hope is that more people will begin to truly see how value is created and have a better understanding of economics and how it can impact their lives.
Thoughts?
What are your thoughts on Trump's tweets about crypto? Do you think it does more harm or good? Looking foward to chatting with you guys below!