Trump’s $35T Bitcoin cheque idea: Crypto as solution to US debt?

• Trump’s shift to promoting crypto may be driven more by campaign strategy than genuine belief.
• The upcoming U.S. election could significantly impact Bitcoin’s future and crypto-friendly policies.

Former President Donald Trump, who once disparaged cryptocurrencies as a scam, has dramatically shifted his stance, now embracing the crypto space with unprecedented enthusiasm.

Trump’s pro-crypto moves in question

This election cycle, he’s captured the attention of crypto voters through various high-profile actions, including accepting crypto donations, proposing a strategic Bitcoin reserve for the U.S., marketing Bitcoin-themed merchandise, and making a significant appearance at the Bitcoin Conference 2024.

However, despite his support, Trump seemed notably unprepared during a recent FOX Business interview when questioned about his vision for advancing crypto’s role in America.

His answers highlighted a lack of understanding of crypto and what it is supposed to do.

When asked about his speech at the Bitcoin [BTC] Conference 2024 about wanting crypto to have a more prominent role in America, he said,

“You have to understand about crypto, crypto is a very interesting thing. Very high level in certain ways, intellectually very high level. But if we don’t do it, China’s gonna do it. China’s gonna do it anyway, China’s already doing it. And if we don’t do it, other countries are gonna do it. So we might as well be at the forefront.”

Here he didn’t mention what it is that China and other countries are doing.

What’s more to it?

He further went on to compare BTC with traditional finance when he mentioned that the US could hand a Bitcoin cheque worth $35 trillion to pay off the US national debt.

He said,

“Who knows, maybe we’ll pay off our $35 trillion, hand them a crypto cheque, hand them a little Bitcoin, and wipe out our $35 trillion.”

This showcased that Trump’s recent support for crypto may have been nothing more than a campaign tactic, capitalizing on the discontent the crypto community has with the current regime’s attitude towards crypto.

What does the community have to say about Trump?

Reacting to Trump’s baseless comments, Reddit user Routine_Koala4914 said,

“Spoken like a true politician. Say so much and nothing at the same time, while convincing their followers that they are following a genius.”

Economist Justin Wolfers also expressed skepticism. He said,

“That’s not how debt works; it’s not how crypto works; and it’s not how economics works.”

Despite some doubts about Trump’s crypto basic knowledge, his impact on the market is significant. A recent AMBCrypto survey found that 80% of investors believe BTC could surpass $80,000 if Trump wins the presidency.

Additionally, as of July 2024, 25% of crypto discussions on X revolve around the U.S. elections, with 76.6% of investors expecting the Republican Party to support crypto-friendly policies.

This highlights that the political climate is poised to play a crucial role in Bitcoin’s future. 

Therefore, as the United States approaches the presidential election, just 94 days away, it will be fascinating to see whether Trump can secure the support of crypto voters or not.