Since Trump's victory, the crypto market has skyrocketed. I've made 100% profit on Cardano, and 50% on BTC. I've already cashed out my initial investment and just riding on pure profit now.
However, once the market corrects this will all come down, and I expect it to happen around summertime. My dilemma is whether I should totally cash out now and wait, or just hodl (crypto slang for hold) and take more profits, but getting greedy might be priming me for a bigger fall. Tough decision.
There are several concerning aspects for the US and those investing in crypto with Trump’s push for cryptocurrency.
Generally speaking, a US president and administration’s focus on cryptocurrency is detrimental to the country, particularly if it includes ideas like a "Trump Crypto" or similar initiatives, as this risks undermining the dollar status as the world’s reserve currency. Such a move could have long-term negative consequences for the US economy and its geopolitical standing.
Consequences from which the US might never recover. (and here I am thinking, should I just highlight or should I scream?)
It is therefore more likely that Trump’s motivation is personal rather than national. By creating his own cryptocurrency, Trump could capitalize on his popularity and speculative crypto enthusiasts, opening up opportunities for significant quick profits. A "Trump Coin" could be marketed as a symbol of "patriotic economy" or resistance against the establishment (In this case, ironically, it is equivalent to the nation as a whole), something that would resonate strongly with his base. If Trump or a member of his family is directly involved in the creation or support of a cryptocurrency, it creates an obvious conflict of interest. He could use his political power to benefit the currency through policy changes or federal support while profiting personally from it.
Another convenient side effect of such a move could be its benefit to Russia, which might even be part of the motivation (if we discard personal gain). A US push for cryptocurrency could (advertently?) play into Russia’s hands by reducing the dominance of the dollar, weakening the effectiveness of sanctions, and creating new opportunities for Russia to strengthen its economic and political independence.
If the U.S. leads the charge on cryptocurrencies, it may encourage other nations, such as China and Russia, to develop and promote their own digital currencies as tools to reduce their reliance on the dollar. China has already launched its digital yuan, partially designed to erode the dollar’s dominance in Asia.
At the same time, the dollar’s role in the global financial system is central to the USs ability to enforce effective sanctions. The decentralized nature of cryptocurrencies makes it harder for the US to monitor and control financial flows. This could provide Russia and other sanctioned nations with tools to move and hide money without detection. Cryptocurrencies also offer alternative channels for Russia to circumvent sanctions.
Additionally, Russia could benefit from a fragmented financial system where its own ruble or digital ruble gains more prominence.
