On his way back to the White House, Donald Trump, the former president of the United States, has made promises to support the digital currency industry and make America the “digital currency capital of the world”. These promises, along with the launch of a family project in the field of digital currency called World Liberty Financial, have attracted attention. However, there are concerns about conflicts of interest, potential risks, and the impact of these policies on the future of Bitcoin. In this article, we will examine the effect of these promises on the price of Bitcoin and its political consequences.
Trump's digital currency business; Beginning with security challenges
The World Liberty Financial project, which was introduced by Trump's two eldest sons, Donald Trump Jr. and Eric Trump, has faced several problems in the beginning. The user accounts of some members of the Trump family, including Lara Trump and Tiffany Trump, have been hacked and fake links related to this project have been published on social networks. These security problems soon led to political concerns and even worried some Trump supporters in the cryptocurrency world.
Nic Carter, a prominent supporter of Trump and co-founder of Castle Island Ventures, called this project a big mistake. He believes that this family business could damage the image of Trump and the digital currency industry and cause a loss of public trust in this field. Furthermore, many experts have warned that projects launched in such murky ways are prone to abuse and fraud.
Trump's change of position towards digital currency
In 2019, Trump denounced cryptocurrencies as a tool for illegal activities, but now seems to have changed his stance. In May, he announced that his campaign would accept digital currency donations and support the creation of a “digital currency army.” He has also promised, if re-elected, to make America a cryptocurrency hub and introduce policies to support Bitcoin mining and the development of decentralized finance (DeFi).
This change of position could have important implications for the future of Bitcoin. With Trump supporting Bitcoin mining and reducing legal restrictions in this field, it is expected that the demand for Bitcoin will increase and this will lead to an increase in the price of this digital currency. Also, government support for blockchain technologies and decentralized finance can attract new investors to the digital currency market and improve liquidity in this area.
Attracting voters and influencing the future price of Bitcoin
One of the main reasons for Trump's support for digital currencies is to attract young voters, especially conservative young men. Primarily concerned with government control of the global economy and government restrictions, this group looks to digital currencies as a way to counter these restrictions. This support for digital currencies could benefit Trump in the presidential election and at the same time increase the demand for currencies like Bitcoin.
With the increase in demand for Bitcoin and other digital currencies following Trump's promises, there is a possibility of an increase in the price of these currencies. However, some experts believe that these promises, if they are not implemented properly or face problems, could end up hurting the digital currency market. For example, if projects such as World Liberty Financial fail or users lose their money due to hacking and scams related to these projects, trust in the digital currency market will decrease and the price of Bitcoin will also be affected.
Political concerns and conflict of interest
With Trump's entry into the digital currency market and his promises to support the field, concerns have been raised about the conflict of his political and business interests. Some political observers believe that Trump and his family are using their political position to boost personal businesses, and this could lead to a conflict of interest.
Democrats, on the other hand, are trying to portray Trump as a fraud and his close ties to the cryptocurrency industry as an example of political abuse. These criticisms could affect the future of digital currencies and government policies related to it and hinder the development of this market in the United States.
J. W. JW Verret, a law professor at George Mason University, believes that Trump has not committed a violation by starting a business in the field of digital currency, and starting a business in itself does not cause a problem. However, many experts are concerned that mixing politics and business in the field of digital currencies could lead to political and legal problems.
Conclusion: Opportunities and Challenges for Bitcoin
Trump's promises to support digital currencies and make America the digital currency capital of the world can create many opportunities for the Bitcoin market. Increased demand, government support, and the development of technologies related to blockchain and decentralized finance are all factors that could contribute to the growth of Bitcoin's price.
However, there are also challenges. Projects related to the Trump family, such as World Liberty Financial, face security problems and the possibility of abuse. If these projects do not succeed, they could damage the credibility of the digital currency market and reduce public confidence in the field.
Ultimately, the future of Bitcoin and other digital currencies depends on the correct implementation of policies related to this area, as well as the success of Trump's digital currency projects. If Trump can make good on his promises and provide broad support for the digital currency industry, we will likely see the price of Bitcoin rise in the future. But if these promises fail, this could lead to the loss of the digital currency market and a decrease in the price of Bitcoin.
