Former U.S. President Donald Trump. (Photo by Win McNamee/Getty Images)
Donald Trump gained a good reputation thanks to bitcoin
Bitcoin
The project, which associates Trump’s name with a crypto initiative rather than Bitcoin, threatens to confuse and alienate his supporters, both Bitcoiners and his conservative base. Worse, this misguided foray into the world of DeFi could reinforce dangerous misconceptions, leading its most ardent supporters to miss the opportunity that Bitcoin represents as a hedge against inflation and a path to long-term, generational wealth.
Bitcoin is not a cryptocurrency
The first and most important point to understand here is that Bitcoin is not a cryptocurrency. This is a distinction that has become increasingly clear to those studying the space, but it is one that many still fail to grasp. Bitcoin is a decentralized, deflationary, and censorship-resistant store of value on its own. It does not rely on centralized governance and does not need to constantly change its monetary policy to maintain its integrity. Bitcoin’s fixed supply of 21 million coins and decentralized infrastructure make it a sound currency, fundamentally different from the speculative and often risky projects seen in the broader cryptocurrency space, particularly in the world of DeFi.
DeFi platforms like World Liberty Financial are built on a completely different set of values and assumptions. These projects, which tend to be short-lived and risky, have a history of coding errors, hacks, and governance failures. The fact that Dough Finance, the precursor to World Liberty Financial, was hacked for nearly $2 million in July further illustrates the risks inherent in this sector. Unlike bitcoin, which has proven its security and resilience over the past 15 years, DeFi projects often stumble, leaving investors exposed to catastrophic losses.
He confuses his base and loses Bitcoiners
Bitcoin is not just another asset; it represents a separation of money and state — a principle that deeply aligns with conservative values of individual liberty, limited government and economic sovereignty.
When Trump spoke at the Bitcoin conference, many in the Bitcoin community began to view him as a potential ally in their fight for financial opportunity. His growing partnership with RFK Jr., who spoke intelligently about the value of bitcoin as a tool to protect civil liberties and preserve economic freedom, gave new hope that Trump was beginning to recognize bitcoin’s potential to reshape the American economy for the better.
By partnering with World Liberty Financial, Trump is inadvertently lumping bitcoin with speculative DeFi tokens in the minds of his supporters, despite the fact that the two couldn’t be more different in terms of risk, philosophy, and long-term viability.
Worse still, Trump’s decision will disrupt his MAGA
ETF Point Bridge GOP Stock Tracker
and a conservative base, many of whom are just beginning to entertain the idea that Bitcoin could be a viable alternative to gold. Gold has long been the default “sound money” for conservatives, prized for its scarcity and historical role as a store of value. Convincing these traditionalists to see Bitcoin as the future of sound money has been a slow but steady process. Trump’s association with World Liberty Financial risks rolling back that progress by muddying the waters—by associating Bitcoin’s gold-like properties with the speculative frenzy of cryptocurrency projects.
Short term gain, long term risk
Trump may benefit financially in the short term from this initiative, as enthusiastic investors have flocked to the project. But the long-term negative consequences could be significant. Not only does Trump risk losing the support of bitcoin supporters, he also risks eroding the trust of his conservative base, especially those who are beginning to understand bitcoin’s potential.
If World Liberty Financial fails, as many DeFi projects have, Trump’s base may wrongly attribute the failure to the inherent risks of all digital assets—risks that bitcoin itself does not pose. If conservatives turn away from bitcoin, they will miss out on the considerable benefits it offers: a sound, deflationary, elusive currency and a hedge against the possibility of a currency crisis in the United States. This would be a huge lost opportunity to use bitcoin as a tool to preserve American values during a turbulent time.
Trump’s Bitcoin Policy: The Road to Redemption
This isn’t necessarily the end of the road for Trump or his movement. He’s made missteps in the past and managed to catch up. It’s worth noting that many of Bitcoin’s strongest advocates, including Michael Saylor, once downplayed its potential. Saylor tweeted that Bitcoin would follow the same path as online gambling, only to later become one of its most vocal proponents. Similarly, Elon Musk recently stumbled in his support of Dogecoin
Dogecoin
a project with no use cases and no future, although he was previously bullish on bitcoin.
Trump, like others, may eventually see the difference between bitcoin and the speculative world of DeFi. The problem, however, is that Trump’s influence is so vast that his support for a project like World Liberty Financial could mislead many of his supporters on a massive scale. This could delay the inevitable adoption of bitcoin and undermine the very values that Trump and bitcoin supporters uphold: financial sovereignty, sound money, and the separation of money and state.
By aligning himself with World Liberty Financial, Trump risks undermining not only his credibility with bitcoiners, but also the long-term financial well-being of his supporters. Bitcoin is not a cryptocurrency, and any attempt to conflate the two only serves to mislead those who are only beginning to understand the profound opportunity bitcoin offers. Trump’s venture into DeFi is a step in the wrong direction, one that could do lasting damage to the MAGA movement and the broader push for sound money. The hope among conservative bitcoiners now is that Trump will see the error of his ways and, like others before him, come to fully understand that bitcoin—not cryptocurrency—is the future of finance.
