Renowned economist Peter Schiff has raised an issue between Donald Trump’s tariffs and the president’s plan to make the US a Bitcoin superpower. Schiff believes that Trump is unlikely to achieve his goals with the tariffs while making the US a BTC superpower, as they both contradict each other.
Peter Schiff Explains How Trump’s Tariffs and Bitcoin Plans Contradict
In an X post, Peter Schiff stated that Donald Trump’s goals of solving the problems leading to the US’s huge trade deficits and making the country a Bitcoin superpower are at odds with one another.
The economist explained that the more the US diverts its scarce resources to crypto, the more it will depend on the rest of the world to produce the stuff that Americans need. Peter Schiff, who is a Bitcoin skeptic, has on several occasions criticized Trump’s tariffs and his Bitcoin plans.
He believes that the tariffs will only harm the US and lead to higher inflation or recession. The economist also believes that plans like the Strategic Bitcoin Reserve are a waste of resources. Schiff even urged former President Joe Biden to sell the US’s Bitcoin holdings before Trump took office earlier this year.
With Trump not backing down on his tariff plans, Schiff predicts that the Fed will likely cave and move to cut interest rates instead of raising them to help curb inflation. He predicts a Gold rally to new highs if that eventually happens.
The Bitcoin Criticism Continues
As a follow-up to his original post, Peter Schiff again criticized Bitcoin and Trump’s Strategic BTC Reserve plans. He stated that the flagship cryptocurrency does not create any value for the US. Instead, he claims resources are just wasted as money moves from Bitcoin buyers to sellers.
Meanwhile, Peter Schiff also commented on Gold’s correction towards the end of this week while the Bitcoin price surged past the $95,000 mark. He stated that this was just a counter-trend move, which happens from time to time. He urged market participants not to read anything more into it.
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]]>The sell-off in the cryptocurrency market has stalled, with the President’s Day holiday bringing some respite. The reversal comes amid calls of a crypto winter, an extended lean patch just like the 2018 crypto bear market.
Bitcoin Limps Back Up: Bitcoin (CRYPTO: BTC), which on Monday morning pulled back to its lowest price since early February, is now reversing course. The apex crypto fell below the psychological support level of $40,000 on Sunday and closed the session at $38,431.38. It saw further weakness early in Monday’s session before cutting the losses and moving into positive territory.
The stock and bond markets in the U.S. are closed in observance of the Presidents’ Day holiday on Monday. Equity and commodity futures market will be open for abbreviated sessions. Since cryptocurrencies do not fall under any regulatory purview, the market trades 24-7, including on holidays.
Crypto trading during the weekends and holidays faces the threat of unusual volatility, characterized by wild price swings. Low volume and margin trading are some of the factors behind the huge moves. Crypto investors usually trade on margin, or in other words, money lent by the exchanges.
When the prices of the crypto holdings fall below a particular level, margin calls are triggered. With banks closed on holidays, investors may find it difficult to meet margin calls, forcing the exchanges to sell some crypto holdings.
After the weakness in the past few sessions, Ethereum (CRYPTO: ETH) is seeing a nice recovery.
Among other major altcoins, Binance Coin (CRYPTO: BNB) Cardano (CRYPTO: ADA) and Solana (CRYPTO: SOL) have all turned around.
In the meme coin space, Dogecoin (CRYPTO: DOGE) was up over 1% and Shiba Inu (CRYPTO: SHIB) was seen outperforming, with a gain of over 6%.
Stable coins, which are backed by the U.S. dollar, are holding steady to trading higher. Tether (CRYPTO: USDT) and USD Coin (CRYPTO: USDC) are seen flatlining or trading marginally higher. Terra (CRYPTO: LUNA) is gaining close to 8%.
Related Link: This Big US Investment Bank Is Doubling Down On Its Bitcoin Exposure
Expert View On The Sell-Off: The crypto market swoon seen since early November has left many wondering when things will start to look up. The prospect of Fed tightening and the Russia-Ukrainian standoff have been weighing down on the space in the near term.
Ethereum founder Vitalik Buterin sees another crypto winter as a welcome development, as it will lead to an industry shakeup. The crypto billionaire said in an interview with Bloomberg that the sell-off will ward off those projects indulging in market manipulation, and provide incentive for crypto projects focused on improving technology.
Recovery May Be Years Away: At least for Bitcoin, a reversal is not expected until late 2024 or the beginning of 2025, that’s according to Du Jun, co-founder of cryptocurrency exchange Huobi. Jun told CNBC that the Bitcoin bull markets correlate with the halving, which occurs once in every four years. The previous halving occurred in May 2020.
Bitcoin halving is the process of halving the rewards due to miners after each set of 210,000 blocks is mined. This is meant to check any exponential increase of bitcoin in circulation, thereby keeping prices in check.
At last check, Bitcoin was seen trading up 0.87% at $38,564.01.
Ethereum was adding 3.30% to $2,711.75.
Doge was rising 1.17% to $0.138100.
Shiba Inu was rallying 6.07% to $0.000027.
Related Link: Bitcoin Reigns Supreme, Still Accounts For 46% of the Total Value of Crypto Markets: Survey
Photo: Courtesy of Jorge Franganillo on Flickr
Cardano has recently been in the news for all of the right reasons recently. The project just successfully launched the Alonzo Hard Fork Combinator (HFC) on Sunday and with it comes smart contracts capability for the network. Enabling a whole new world of decentralized finance to be built on the network. This has been founder Charles Hoskinson’s dream for the four years it has taken to get here.
The founder took to Twitter to celebrate this monumental feat, which he referred to as the new era of Cardano. “Tomorrow is the big day! We are entering a new Era of Cardano,” the tweet read. The community engaged with Hoskinson on Twitter following his tweet. The replies sported both support and questions from inquiring community.
Related Reading | Cardano Network Upgrade And Hard Fork Gets Support From Binance
Removing The Need For CEOs And Presidents
Responding to an overly optimistic reply from a supporter, Hoskinson made a surprising revelation. The tweet had congratulated the founder for the Cardano upgrade, but referred to Hoskinson as “future POTUS 2032.” Hoskinson then responded saying that he had no desire to be president since he had no taste for politics. Going on to add that the point of his career was actually to remove the need for presidents and CEOs.
This is wishful thinking. I have no desire or taste for politics. The entire point of my career is to remove the need for CEOs and presidents. Then I can retire and ranch bison
— Charles Hoskinson (@IOHK_Charles) September 12, 2021
Related Reading | Cardano Successfully Deploys Alonzo HFC, But Why Is Price Down?
It’s not exactly clear how Hoskinson plans to completely eliminate the need for presidents and CEOs but the statement has been well-received by community-backers, who have gone on to hail the founder as a true leader.
Cardano Ready For The Future
Smart contracts are now finally a reality on the Cardano network. Developers who have worked tirelessly for the past four years on the project have finally gotten to the finish line. As the entire team celebrates the finish line of one project, it ushers in the start of another. With smart contracts functioning as intended and developers getting ready to launch their decentralized applications (DApps) on the network, the team behind Cardano prepares to take on an even bigger project.
Related Reading | New To Bitcoin? Learn To Trade Crypto With The NewsBTC Trading Course
The topmost priority now is to maintain security for the project with all of the new development happening on the network. This includes making sure that the ecosystem is safe enough for users to trade on. While also maintaining a developer-friendly environment for devs to build upon.
Cardano also boasts a robust NFT ecosystem, with over 780,000 tokens already minted to date and more than 19,000 policies. The HFC launch readies Cardano to go head to head with other leading decentralized finance platforms.
ADA price trending in the $2.3 range | Source: ADAUSD on TradingView.com
Featured image from The Daily Hodl, chart from TradingView.com