Crypto Became a Trump Trade – Paul Krugman

2 days ago

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Donald Trump criticized China's new export controls on rare earths, calling them a 'moral disgrace' and threatened to impose 100% tariffs.
Trump quickly reversed his stance, praising Chinese President Xi, likely due to market reactions, especially in the crypto market where Bitcoin fell 20%.
Trump holds an estimated $870 million in Bitcoin, suffering personal financial losses from the crypto crash.
The crypto market crash was linked to Trump's political vulnerability rather than economic factors, as crypto's value is tied to political support.
Cryptocurrencies have failed to become a mainstream payment method, with most holdings being speculative or used for criminal activities.
Bitcoin and other cryptocurrencies are heavily supported by Trump, who has benefited financially from the industry and promises to promote it.
The crypto industry thrives on crony capitalism, relying on political bribes rather than legitimate economic use.
Trump's threat of a trade war with China caused crypto prices to plunge due to fears of weakening political support for the industry.

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