For the first time in my life, I have been following US politics closely, not because I am interested in politics itself, but because Bitcoin was on the agenda for the first time.
I was elated to hear that Trump won, not because I thought he would be a great president, but because he was pushing a pro-Bitcoin narrative. While it’s obvious that he understands little about Bitcoin, it is a major shift to have a pro-Bitcoin president, and the rapid price appreciation of bitcoin reflects that shift.
This elation quickly turned to disappointment when I heard that he was pro-crypto, taking advice from a16z (a scammy crypto VC firm) and launching his own shitcoin/memecoin: $TRUMP.
Any serious Bitcoiner should find this very concerning, given the dubious nature of the crypto industry & the guilt by association that rubs off on Bitcoin and stunts its adoption.
Why the launch of $TRUMP is bad for Bitcoin
The launch of Trump’s memecoin is a bad omen for Bitcoin adoption. The president-elect creating and rug-pulling gullible fans, while loudly proclaiming the benefits of Bitcoin, will result in the layman conflating Bitcoin with scams.
This has long been an issue for Bitcoin, as grifters have used the brand to peddle pump & dump coins, resulting in a general scepticism about Bitcoin, and a lack of interest in doing the research required to understand the value proposition Bitcoin provides, and what sets it apart from other cryptocurrencies.
Unlike the broader crypto industry, often plagued by scams and pump-and-dump schemes, Bitcoin is the only truly decentralized, censorship-resistant system with real-world utility.
If you want to learn more about what sets Bitcoin apart, I highly recommend watching this video:
Why the launch of $TRUMP is bad for Trump himself
Many of you may believe that the launch of $TRUMP is all upside for the Trump administration. After all, they will get quick, easy money. This view is naive and shortsighted. While the administration will gain in the short term monetarily, they will lose out in the long run.
First, any monetary gains from the launch will be reversed with future litigation, as the people who get rug pulled will want compensation for their losses.
Second, Trump’s reputation as president will be permanently tarnished by the scammy nature of his memecoin. Any monetary gain he gets from this launch will be peanuts compared to the damage to his reputation as president.
Third, he stunts the growth of Bitcoin. Bitcoin is the only cryptocurrency that provides value to the world via censorship resistance, borderlessness, store of value and decentralisation. By promoting Bitcoin, Trump can not only see gains via appreciation in his Bitcoin holdings, but he also gets to enhance his reputation instead of tarnishing it.
For these three reasons, it is in Trump’s best interest to drop $TRUMP and go all in on Bitcoin.
Conclusion
The launch of $TRUMP is a wake-up call for Bitcoiners and Trump supporters alike. To protect Bitcoin’s reputation and Trump’s legacy, it’s crucial to educate the administration on Bitcoin’s unique value — and the risks of associating with the broader crypto industry.
What do you think about the launch of $TRUMP and its implication on Bitcoin? Leave your comment below.
