In recent statements made by United States-based politicians, it is apparent that the country is leaning towards a negative view of Bitcoin and cryptocurrencies - but this move is not in the least surprising. Both former President and Republican Donald Trump, as well as former presidential candidate and Democrat Elizabeth Warren have released statements about Bitcoin in the past few days, weighing in on the global observance of El Salvador adopting Bitcoin and putting Bitcoin on an equal playing field as any foreign currencies.
US Takes Negative Bitcoin Stance
Since the announcement of El Salvador adopting Bitcoin, interest in Bitcoin and cryptocurrencies has jumped significantly. Cryptocurrencies and different speculation trend consistently and often on platforms such as Twitter. All of this attention and development in the Bitcoin community has in fact caught the attention of US politicians.
In one interview, former president Donald Trump stated that he believes Bitcoin is a "scam" and does not like it because it is "competing against the dollar." Mr. Trump is not wrong in stating that Bitcoin is competing against the dollar. To call it a scam simply because you do not agree with it is childish and petty. Bitcoin is being seen as a viable alternative to the US dollar. El Salvador, a country that has exclusively been operating financially and economically through the USD since the turn of the century is seeing the fundamental value and advantages that Bitcoin has.
In another statement that received a lot of backlash from Bitcoiners and supporters on Twitter came from Elizabeth Warren, a US senator and former presidential candidate. She stated in a video on Twitter that Bitcoin "eats up more energy than entire countries" and to fight the climate crisis, we should be "cracking down on environmentally wasteful cryptocurrencies." This statement is baseless and strategic misinformation to attack Bitcoin.
The banking system, the same system that actively supports and donates to Elizabeth Warren's political career, is far more damaging to the environment than Bitcoin or cryptocurrencies and its not even close. See the chart below for reference:
As Bitcoin gains popularity among individuals, cities, and even countries, the influence and power that the United States has with the USD being the most widely used standard of currency in the world is in jeopardy. Currently, the USD accounts for just under 60% of the total reserve currency supply in the world. This has been steadily declining as foreign countries and other entities choose to move to alternatives over the USD. This has been seen in recent weeks through the likes of Russia and China making moves to remove the USD from their holdings or to strategically place their own currencies in better positions to account for trade deals and other economic programs.
Growing sentiment in the global economy shows growing concerns for the rate at which the US Federal Reserve is printing and releasing new dollars into speculation. As more dollars are printed, the overall value of the currency begins to erode. More countries are taking note of this and are seeing that holding a declining asset on their balance sheets is not good practice. Thus, they are making moves, such as El Salvador adopting Bitcoin, to better set up their own nations for a more prosperous future. Mismanagement by US officials and the central bank are pushing the need for alternatives.
To loop back to the comments Donald Trump made, he is correct in that growing Bitcoin adoption will have a negative affect on the overall power and influence of the United States. As less entities choose to use the dollar, the currency will continue to weaken and the purchasing power of Americans will be diminished as the buying power of the dollar erodes.
However, the overall benefits that Bitcoin can bring to the global community far outweighs the short term dominance of America. The United States does not rule the world and should not have the ability to control entire nations through the management of the USD by the Federal Reserve. Bitcoin provides a solution to that and will continue to do so regardless of negative press from US politicians.
Bitcoin is good for the many - not the power hungry few.