Analysis

Crypto Bubble and Hot Air: Trump is Not Going to Make US Into 'Bitcoin Superpower'

The 47th POTUS' boasts about making the United States a global cryptocurrency powerhouse are likely just that, boasts, veteran financial analyst Paul Goncharoff tells Sputnik.
Sputnik
The fact is that Trump is the president of the United States, “which governs the trust in, use, and control of the US dollar and not a trustless cryptocurrency like BTC, XRP, USDT, or USDC.”
The US government establishing a “100% ownership and control” of a cryptocurrency, on the other hand, would simply “defeat the purpose of trustless crypto,” so the odds of a US dollar CBDC emerging anytime soon are pretty low.
That said, there are no obstacles for the US government to hold crypto assets as part of its reserves – all it needs it proper legislation and congressional approval.
The loosening of crypto regulations expected under Trump, however, carries certain risks as “the clarity of what will be regulated is still missing” and “markets dislike uncertainty; it makes them jittery.”
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There is also “every chance” that, just like “with any other investable that comes under the influence of hype, reality, and again hype,” Trump’s actions would lead to a crypto bubble.
For example, some crypto could be hyped as “the crypto of choice for classic institutional investors” and experience mass investment, only for the ensuing bubble to burst when “sobering fact of reality and the complex interaction of politics and finance make themselves known.”
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