United States president Donald Trump may just have given Bitcoin a huge boost inadvertently after he bragged about the might of the US Dollar. Trump appeared to throw his support behind the continued manipulation of his country’s currency by the Congress and Federal Reserve.
Trump says printing new $6.2 trillion is beautiful
The President was speaking during a press conference on March 27 in which he ironically promoted the cryptocurrency by defending the Federal reserve actions of printing new money out of thin air. Trump was quoted saying
The beautiful thing about our country is $6.2 trillion — because it is 2.2 plus 4 — it’s $6.2 trillion, and we can handle that easily because of who we are, what we are
Trump’s seemed to throw his support behind the recently instituted measures to help the country navigate the ongoing coronavirus-driven economic crisis. He was referring to the two separate measures undertaken by US policy makers. The President signed a bill passed by Congress creating $2 trillion worth of bailout while the Federal Reserve intends to print another $4 trillion through a host of quantitative easing measures.
Trump’s comments irk crypto community
Trump expressed his dislike for Bitcoin last year via this tweet
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
However his recent statement are counter-intuitive to his strong opposition to Bitcoin and other cryptocurrencies.
Trump’s comments came as a timely reminder of the inadequacies of the existing monetary policies and unreliability of the government. Such kind of meddling with the national money supply is a trigger for cryptocurrency enthusiasts and champions for the decentralisation of finance.
The proclamation also provided a perfect example of why Bitcoin was created in the first place and reasons the crypto community continually refer to it as sound money.
Blockstream CSO Samson Mow, was among the first to comment on the president’s utterances via a tweet asking just how much had the crypto community paid Trump to advertise Bitcoin.
— Samson Mow (@Excellion) March 28, 2020
Mow’s followers expressed their disbelief at the level of ignorance shown by the President and US government in handling the economic crisis by printing new money.
AvantiBT Founder and CEO Caitlin Long ironically referred to Trump statement as good news saying the Fed had only raised their balance sheet by only $600 million. Long went on to predict that by the end of the crisis the US government will create more than $10 trillion.
GOOD NEWS?? Fed balance sheet up "only" $600m this week (to $5.3trn from $4.7trn last week)–I was expecting more. Prediction: b4 crisis ends it will far exceed $10trn. In short-term, huge dollar demand bc short-covering, but it won't last. Then timbrrrr?https://t.co/QHGx8tde3Z
— Caitlin Long 🔑 (@CaitlinLong_) March 26, 2020
Such an unprecedented occurrence would greatly affect the value of the US Dollar and cause much inflation whilst Bitcoin supply and fundamentals remain intact.
For now all Bitcoin investors can say is Thank you trump.
Image by Michael Vadon from wikimedia.org