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Donald Trump sees Bitcoin as a ‘scam competing against the dollar’

Former US President Donald Trump sees Bitcoin as a “scam” affecting the value of the US dollar.

“Bitcoin, it just seems like a scam,” Mr Trump told Fox Business. “I don’t like it because it’s another currency competing against the dollar.”

He added that he wanted the dollar to be “the currency of the world”.




The price of Bitcoin has been falling steadily since early May and so far has not recovered.

The falls were widely attributed to China banning banned banks and payment firms from providing services related to crypto-currency transactions, as well as electric car maker Tesla announcing it would no longer accept the currency a week before that.

His comments come on the back of news El Salvador plans to make the crypto-currency legal tender.



IS BITCOIN A THREAT?

Neil Wilson, chief market analyst for Markets.com, thinks Bitcoin is definitely not a currency.

He says that to qualify as a currency, it must have the following functions:

•A unit of account
•Provide a good store of value
•Be a means of payment

“I call Bitcoin more of a security, like a stock or bond,” says Mr Wilson.

“Although it’s appreciated massively, it’s far too volatile to be a currency – it moves around more than most stocks do.”

He says that with Bitcoin, people are mostly buying it to hold onto and invest, rather than spending it frequently.

And as to Mr Trump’s assertion that the crypto-currency is threatening the US dollar, he disagrees, although it could be a slight threat to gold.




“The means by which America exerts influence over the world is predominantly by the dollar, and it’s not going to give that up, so I don’t see Bitcoin as a threat whatsoever,” he says.

“Governments don’t like other people creating money – they’ve seemed to tolerate crypto-currencies for some time, but they will eventually get their own digital currencies established and will squeeze Bitcoin out into the margins.”