President Donald Trump ruffled many feathers and raised quite a few eyebrows when he took on bitcoin and other cryptocurrencies during one of his characteristic Tweetstorms. Apparently, Trump has a fair idea of what bitcoin is and what it can do, and his tweets make it clear that he is not a fan of cryptocurrencies.
Donald Trump’s negative take on bitcoin has drawn sharp criticism from several quarters. Morgan Creek Capital Management CEO Mark Yusko is one of the many voices taking on Trump’s misunderstanding of bitcoin and other cryptocurrencies.
Donald Trump’s first objection to bitcoin is that it isn’t money, and this is where Yusko takes his down with a short and simple retort.
Yusko points out that the US Dollar is a fiat currency, which means that it does not possess any intrinsic value. So Trump not treating bitcoin as a form of money does not cut it in Yusko’s words.
The Morgan Creek CEO points out that money is a medium that facilitates exchange of goods and services in an economy. This very definition is the reason where Trump’s view of bitcoin as not being money is defeated.
After all, bitcoin is now being accepted across several verticals as a valid means of payment. Around 20 Circle K convenience stores recently started a pilot program to deploy bitcoin ATMs in Arizona and Nevada.
Across the Atlantic, Switzerland’s first online retail store had recently announced that it will start accepting payments in cryptocurrencies. These developments make it clear that the general population is indeed treating bitcoin as money, and that’s the way it should be. After all, the digital currency came into existence to serve the purpose of making peer-to-peer payments, which would ideally be made in exchange for some consideration.
The fact that bitcoin in particular and cryptocurrencies in general are decentralized digital assets without any agency controlling them is the reason why they are being used as money in several countries across the globe.
For instance, African countries rely a lot on cryptocurrencies to facilitate international trade. After Zimbabwe banned the use of the US dollar, the South African rand, and the British pound, bitcoin demand started spiking. That’s despite the fact that Reserve Bank of Zimbabwe had prohibited local banks from processing bitcoin transactions over a year ago.
But Zimbabweans are now engaging in peer-to-peer transactions to circumvent the bans on both cryptocurrencies and the US dollar. So bitcoin is giving them an avenue to conduct trade beyond borders, and this proves why the flagship cryptocurrency is as good as money.
Donald Trump’s flawed understanding of cryptocurrencies has brought the entire community together. So don’t be surprised to see more crypto experts coming out and teach Donald Trump a thing or two about bitcoin.
Last modified: May 20, 2020 1:38 PM UTC