Opinion: Trump’s Crypto Investments Are a Big Problem

In recent months, the former president has sought to position himself as the pro-Bitcoin candidate, pocketing millions of dollars in donations from industry heavyweights.

He’s suggested that the U.S. should copy El Salvador by creating a strategic BTC reserve, meaning the government would hold on to seized crypto rather than sell it.

One particularly outlandish policy calls for all remaining Bitcoin to be mined in America — a rather surreal idea that might be difficult to achieve.

Based on all this, you’d assume that Trump is an avid HODLer, a billionaire who’s aggressively accumulating BTC because he believes it’s the future of money.

But in fact, the opposite is true. Why? Because official documents show the 78-year-old doesn’t own a single sat. This should send alarm bells ringing among Bitcoiners.

According to the Federal Election Commission, he does have some crypto investments — between $1 million and $5 million in Ether, to be precise.

Trump has also trousered more than $7 million from a licensing deal where he was depicted as a cowboy and a superhero in tens of thousands of NFTs.

Arkham Intelligence, which tracks his wallet, claims the total value of his crypto holdings now stands at $3.4 million — and a decent chunk of this is in illiquid altcoins such as TROG. (In case you’re wondering, its mascot is a frog wearing a Make America Great Again hat.)

Many dyed-in-the-wool Bitcoiners absolutely despise any cryptocurrency that isn’t Bitcoin — arguing that they’re nothing more than a cesspit of speculative greed.

And even though many American BTC investors are going to throw their support behind Trump come November, voters should take a moment to reflect on what his crypto wallet tells us.

‘A Scam Against the Dollar’

Just three years ago, Trump described Bitcoin as a “scam” — and warned didn’t like it because it was competing against the U.S. dollar.

And back in 2019, he wrote:

We’ve never really been treated to an explanation about why Trump has suddenly changed his tune, but there are a few plausible theories.

Inevitably, the first one is money. Estimates suggest that Trump’s re-election campaign has received about $4 million in Bitcoin since opening the door to crypto donations. Given the candidate’s facing a myriad of legal woes right now, every little helps — and a substantial chunk of the funds raised have gone towards paying for eye-watering attorney fees.

Telling the crypto industry exactly what it wants to hear is an easy way of tapping into millions of dollars in new donations. But it’s worth remembering that Trump has a track record of dizzying U-turns on countless policies — from immigration to banning TikTok. This isn’t driven by careful thought about what’s best for America, it’s influenced by appeasing deep-pocketed contributors.

There’s little doubt that Trump’s motivation to appear at Bitcoin 2024 in Nashville was driven by the promise of more checks cut to his campaign. The conference’s organizer, David Bailey, reportedly promised to raise millions for his warchest if he made the trip out to Tennessee — and it was later confirmed that “whales and OGs” had pledged $25 million.

The second motivation for his sudden about-face is establishing a clear contrast against the Democrats. You could argue that this is politically astute — especially considering the Biden administration has faced repeated criticism for its heavy-handed approach toward the regulation of cryptocurrencies. Trump has vowed to fire SEC chair Gary Gensler on day one if he wins back the keys to the Oval Office, and while it makes for a nifty soundbite, this is an intricate process that can take months, if not years, to complete.

The third and final reason why he has embraced digital assets is ego, and that’s a driving force behind oh so many of his decisions. It was unsurprising to read a Bloomberg report that revealed “Trump became a crypto believer after falling in love with NFTs of himself.” It’s claimed that he’s spent hours approving each and every picture used on these digital trading cards.

For further evidence of Trump’s narcissism, look no further than his recent meltdown after his Democratic rival Kamala Harris made the front page of Time magazine. “I’m much better looking than her. Much better. Much better. I’m a better looking person than Kamala,” he told the crowd during a recent stump speech.

Reading Between the Lines

I’d be willing to make a bet with you: if Trump was asked 10 basic questions about how Bitcoin worked, he’d struggle to answer them correctly.

This is a man who’s known for being more style than substance — and the same can very much be said for the crypto policies he’s proposing.

The fact Trump owns no Bitcoin at all is a sure sign that this isn’t a man who’s willing to put his money where his mouth is, and that he doesn’t believe in this cryptocurrency’s potential.

Americans may have a number of reasons to support Trump less than three months’ time — but backing him based on his crypto rhetoric alone is misguided, and voters who do are setting themselves up for a lot of disappointment.

It almost feels like the community has been awestruck by someone who’s simply mentioned “Bitcoin” on the national stage — without taking a step back to consider exactly what he’s proposing, whether it’s achievable and whether it’s well-intentioned. And focusing on his newfound vague endorsements of BTC, while completely disregarding what he’s said and done in the past, is an error of judgement.

If Trump can change his mind once on Bitcoin, he can easily change it back. And if he secures a second term in the fall, that’s exactly what might happen.

Disclaimer: The opinions in this article are the writer’s own and do not necessarily represent the views of Cryptonews.com. This article is meant to provide a broad perspective on its topic and should not be taken as professional advice.

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