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Trump’s Crypto Gamble Threatens Bitcoin Policy Progress

... The project, which ties Trump’s name to a crypto initiative rather than bitcoin, threatens to confuse and alienate his supporters — both bitcoiners and his conservative base. Worse yet, this misguided foray into the world of DeFi could reinforce dangerous misconceptions, leading his most ardent backers to miss out on the opportunity that bitcoin presents as a hedge against inflation and a pathway to long-term, generational wealth.

Bitcoin Is Not Crypto

The first and most critical point to understand here is that bitcoin is not crypto. This is a distinction that has become increasingly clear to those who study the space, yet it’s one that many still fail to grasp. Bitcoin stands alone as a decentralized, deflationary, and censorship-resistant store of value. It is not reliant on centralized governance, nor does it need constant tinkering with its monetary policy to maintain its integrity. Bitcoin's fixed supply of 21 million coins and its decentralized infrastructure make it sound money, fundamentally different from the speculative and often risky projects seen throughout the broader cryptocurrency space, especially in the world of DeFi.

DeFi platforms like World Liberty Financial are fueled by a completely different set of values and starting assumptions. These projects, which tend to be short lived and risky, have a track record of coding errors, hacks, and governance failures. The fact that Dough Finance, the precursor to World Liberty Financial, was hacked for almost $2 million in July further illustrates the risks inherent to 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. ...

Confusing His Base and Losing Bitcoiners

Bitcoin is not just another asset; it represents a separation of money from state — a principle that aligns deeply with conservative values of individual liberty, limited government, and economic sovereignty. ...

In 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 crypto, and any attempt to conflate the two only serves to mislead those who are just beginning to understand the profound opportunity bitcoin offers. Trump’s venture into DeFi is a step in the wrong direction, one that could cause lasting damage to both the MAGA movement and the broader push for sound money. The hope among conservative bitcoiners now is that Trump will see the error of this path and, like others before him, come to fully understand that bitcoin — not crypto — is the future of finance. ..

See the full story here: https://www.forbes.com/sites/davidbirnbaum/2024/09/13/trumps-crypto-gamble-threatens-bitcoin-policy-progress/