Donald Trump and the Crypto Industry: A Union with Risks
Date: 2024-11-06 Author: Oliver Abernathy Categories: BUSINESS
This year, Donald J. Trump has become one of the main politicians interested in the crypto industry. For many years, the crypto community has been looking for a person who can convey its ideology to the general public. At the Bitcoin conference in Nashville, Trump gave speeches where he expressed his support for the industry, announced the creation of a strategic Bitcoin reserve, promised to free Ross Ulbricht, and even announced his DeFi project called World Liberty Financial. All these actions strengthened his popularity in the crypto community and ensured an influx of donations.
However, many believe that Trump's words may be more PR than genuine interest in crypto. His ability to say what the audience wants to hear raises concerns that his support may be fleeting. Here are a few reasons why the crypto industry should be careful in its alliance with Trump.
First, there are doubts that Trump will actually deliver on his promises. People who have worked closely with him point to his inconsistency. Former Chief of Staff John Kelly claims that Trump is willing to break the rules if it serves his interests. Can cryptocurrency rely on such a “friend”? The decentralized principles on which the crypto industry is built are very different from the approach of Trump, who is known for his penchant for authoritarian methods.
Second, the crypto industry’s alliance with Trump and the Republican Party could lead to isolation from other sectors of society. Many crypto leaders openly support the Republicans while criticizing the Democrats. However, such a position risks alienating potential supporters among moderate voters and members of other parties. For example, statements by figures like Ryan Selkis, who are known for their harshness, could create a negative image of the crypto community in the eyes of a wide audience.
Third, by supporting Trump, the crypto industry is essentially taking responsibility for all of his political baggage. Not all of his initiatives are consistent with the principles of the crypto community. Supporting Trump means agreeing with his program, which includes controversial issues such as Ukraine policy, deportations, and restrictions on transgender rights. The question is, is the crypto industry ready to associate itself with these topics?
Ultimately, the crypto industry must be careful in choosing its allies. Dissatisfaction with the Biden administration's policies has led crypto to seek support from Trump, but such an alliance may have unpredictable consequences.
