Former President Donald J. Trump. Jabin Botsford/The Washington Post via Getty Images
Donald Trump said Tuesday that cryptocurrencies were a disaster in waiting.
Trump stated that he doesn't like digital currencies as they hurt the dollar.
He said, "They are definitely something that people don’t know very much about."
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Donald Trump called cryptocurrency a disaster in waiting and attacked them for hurting America's dollar.
When asked about crypto, the ex-US president stated that he likes the currency of the United States. "I believe the other currencies are a disaster in waiting."
Trump cast doubts on digital assets and stated that Americans should "invest in our currency".
They may be fake. They may be fake. Who knows? He said this in the Tuesday interview. They are definitely something people don't know much about. "I have never been a huge fan."
Some Bitcoin supporters, among others, suggested that cryptocurrencies could be a threat to US dollars as a reserve currency. They also suggest their use in transactions such as trade and remittances.
Trump was not the first to criticize cryptocurrency. In June, Trump told Fox's Varney that bitcoin seemed like a fraud and suggested that the asset should have more regulation.
Bitcoin's value has dropped 25% from its record high of $64,000 to $47,500 by Wednesday. It is still up 64% this year. The dollar index has not changed much.
As cryptocurrencies grow in popularity among retail investors, US regulators have increased their focus on cryptocurrency in recent months.
He had previously criticized cryptocurrency on a thread in 2019 before Twitter suspended his account. He said that he was not a fan bitcoin or other cryptocurrencies. "They are not money and their value is highly volatile and based upon thin air."
The former president doesn't like crypto but he does have a group supporters who created a digital token in response to his defeat in the November 2020 election. Magacoin, a pro-Trump cryptocurrency has attracted over 1000 sign-ups as of July.
Trump's administration, however, has not acknowledged the crypto boom. Gary Gensler was appointed to the chair of Securities and Exchange Commission by Biden. He stated that cryptocurrency trading platforms have grown so large that regulation is necessary or they risk losing public trust.
Gensler stated in an interview with Financial Times published Wednesday that "there are many platforms in operation today that would be better engaging" and that instead of asking for permission, Gensler tries to ask for forgiveness.
Read More: The Trader at Wolf of All Streets shares 6 altcoins that he bullishly "hodles" and why crypto investing is the best opportunity for our generation.
