This is not the first time the former president of the United States of America is making his stance on Bitcoin public. In July 2019, Trump tweeted that he’s not a fan of Bitcoin and other cryptocurrencies.
Important Updates
- Bitcoin is a major competitor of the US currency — says Trump.
- The US stock market lacks investing potential as the value increases.
- Indicators show current inflation will influence higher stock rates.
Well, the first thing to ask is this: does it matter that Trump thinks Bitcoin is a scam?
To answer, we have to consider Trump’s age group — what do people in his age bracket think of Bitcoin?
For example:
Janet Yellen, who is of a similar age and holds a government position, also called Bitcoin a scam.! Her reason is that illegal transactions take place on the Bitcoin network.
As we know it, such assumptions were only true in the past. Today, Bitcoin has become more secure and complex. Besides, any currency is prone to be used illegally, even the USD.
Trump, replying to why he doesn’t support Bitcoin had this to say “I don’t like it because it’s another currency competing against the dollar. I want the Dollar to be the currency of the world, that’s what I’ve always said”.
Even though he had done so in the past, Donald Trump said that the stock market is too high right now, and he’s not investing in it.
Taking a look at the S&P 500, we can see that stocks are at an all-time high, with other indicators signaling that the market’s value is incredibly high at the moment.
Comparing the S&P chart to the Buffet indicator (value of the stock market relative to that of the GDP, we can see the following:
The zero-percent black line in the middle is the historical trend line, which indicates a fairly valued market. You can also see more than two standard deviations above this trend line, taking it above the internet bubble of 2000. As of June 3rd, 2021, there was a 230% ratio of market value to GDP, 84% higher than the long-term trend line.
If we recall correctly, Trump once said that if Joe Biden gets elected as US president, the stock market will crash. The former president has a bias towards the stock market now. So, is Trump’s decision not to invest in the stock market strongly tied to Joe Biden’s presidency? And would his predictions of stocks come true?
All in all, there are tons of indicators signaling that inflation will keep the stock market high. There’s also reason to believe that GDP will be catching up to the stock market’s value in the future.
Time will tell whether there will be another financial crisis.
Do you think Trump can ever be convinced about Bitcoin?
