Wednesday, November 30

Fall of cryptocurrencies will be huge, says Donald Trump

In conversation with Fox Business published this Wednesday (22), Donald Trump, former president of the US, returned to attacking cryptocurrencies while defending the dollar. According to him, the fall of cryptocurrencies will be greater than the fall of technology companies in the 2000s.

In addition, the former US president also spoke about his wife, Melania Trump’s venture into the NFT sector, saying that she is doing very well in her business.

It’s important to note that while many projects disappear, in any industry, the best ones will always remain at the top, as does technology companies and cryptocurrencies alike.

Bitcoin is too risky

This is not the first time that former President Donald Trump has gone public to defend the dollar. In October of this year, Trump has already expressed concern about both China’s CBDC and Bitcoin (BTC).

The curious thing is that although he doesn’t like cryptocurrencies, his wife is venturing into the world of NFTs. Second Melania Trump, your work combines your two passions, art and the possibility of helping other people.

Even so, Trump is still not convinced about the role of cryptocurrencies, after all his patriotism makes him defend the interests of the state, which can become weaker when it loses control over the printing of money.

“I want a coin called Dollars, I don’t want to have all these others, and they might have an explosion someday, the kind we’ve never seen. This will make the boom in tech companies look like baby things. I think it’s a very dangerous thing.”

On cryptocurrencies, Trump remains of the same opinion. Adding that their fall could be big, much bigger than the tech company bubble, probably referring to the Internet Bubble, which occurred in the 2000s.

Tech giants dominate the market

Although the Internet Bubble has broken many companies, and therefore investors, today the most valuable companies in the world are precisely from this sector. Apple, Microsoft, Google and Amazon have an average market capitalization of $2.2 trillion each.

Market capitalization of various assets. Source: 8marketcap

The same phenomenon can be noticed in cryptocurrencies, after all, at each high cycle, several of them disappear from the top 10, some of them suffering losses greater than 80%. Despite this, Bitcoin has been at the top for more than a decade and for a few years now Ethereum has been leaning against it, being billed as the next Apple.

In short, it is very likely that most cryptocurrencies will disappear. However, projects with value tend to stay in the market for a long time, gaining more and more adoption.