President Donald Trump ruffled many feathers and raised quite a few eyebrows when he took on bitcoin and other cryptocurrencies during one of his characteristic Tweetstorms. Apparently, Trump has a fair idea of what bitcoin is and what it can do, and his tweets make it clear that he is not a fan of cryptocurrencies.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Donald Trump gets schooled on bitcoin
Donald Trump’s negative take on bitcoin has drawn sharp criticism from several quarters. Morgan Creek Capital Management CEO Mark Yusko is one of the many voices taking on Trump’s misunderstanding of bitcoin and other cryptocurrencies.
Money is a medium of exchange for goods or services within an economy
Therefore #Bitcoin is Money
Some money is fiat, meaning it has no intrinsic value. That is, paper or metal used to create it is not worth much in terms of its value as a raw material.
That is USD
— Mark W. Yusko (@MarkYusko) July 12, 2019
Donald Trump’s first objection to bitcoin is that it isn’t money, and this is where Yusko takes his down with a short and simple retort.
Yusko points out that the US Dollar is a fiat currency, which means that it does not possess any intrinsic value. So Trump not treating bitcoin as a form of money does not cut it in Yusko’s words.
The Morgan Creek CEO points out that money is a medium that facilitates exchange of goods and services in an economy. This very definition is the reason where Trump’s view of bitcoin as not being money is defeated.