According to Fox Business, former US President Donald Trump called Bitcoin a “scam” that threatens the value of the US dollar.
In an interview with Fox, Trump also said he wants the US dollar to remain the world’s main currency.
Right after his comments, Bitcoin’s price dropped sharply by more than 11% during the trading session on June 8, 2021.
Trump’s remarks came after news that El Salvador plans to officially recognize cryptocurrency in its market. Bitcoin’s price has been steadily falling since early May 2021 and has yet to recover.
The main reasons for the price drop include China tightening regulations by banning Bitcoin mining and crypto payment services to support its new central bank digital currency. Additionally, billionaire Elon Musk’s reversal and announcement to pause accepting Bitcoin payments also contributed to the market crash.
A Threat to All Currencies?
Justin Urquhart Stewart, founder of Seven Investment Management, believes Bitcoin poses a threat to all currencies because it isn’t backed by any financial foundation and relies entirely on user trust and celebrity endorsements like Elon Musk.
“Bitcoin is very dangerous because it creates unreliable transactions and isn’t based on any real value,” Stewart emphasized.
According to him, many Bitcoin users behave like gamblers who don’t care whether it’s real money or not. Their main focus is making quick profits. A large number of tech-savvy young people favor cryptocurrencies, but this is risky because they lack deep financial training.
“They know how to trade to make money fast, but they don’t understand how to build long-term wealth,” Stewart added.
Sharing a similar view, Neil Wilson, market analyst at Markets.com, said Bitcoin can’t threaten the US dollar’s dominance because it doesn’t even qualify as a proper currency. Its extreme price volatility prevents it from becoming a widely accepted payment method or a reliable store of value.
“Governments don’t like others creating their own currencies. They might allow cryptocurrencies for a while, but eventually, governments will launch their own digital currencies and crack down on Bitcoin,” Wilson predicted.
