Trump and crypto flip-flops

Regulators must hold their ground, resisting the call of deregulation and ensuring crypto's integration into the financial system is guided by prudence, not populism

- SRINATH SRIDHARAN

DONALD TRUMP IS crypto's messiah-in-chief - conflict of interest aside, he has some sweat equity in an upcoming crypto venture too.

His newfound cheerleading for crypto is as baffling as it is laughable. Just a few years ago, he dismissed cryptocurrencies as a "scam" and a "threat" to the dollar. This dramatic U-turn feels more like a social media post hastily deleted after realising its unintended implications. Much like a child captivated by a new toy, will this crypto fascination fade once the next shiny object appears?

The irony here is rich. Bitcoin, born out of a dream to eliminate middlemen and even governments' control of finance, now finds itself embraced by the very intermediaries it sought to bypass. Wall Street, as the representative of all worlds financial, has smartly been not content with making fees off selling stocks, bonds, insurance, debt arrangements, and mutual funds. It has now turned its sights (and political lobbying) on crypto. In its essence, crypto remains what it has always been: a high-stakes gamble driven by retail sentiment, devoid of intrinsic value, and producing no cash flow. Think of it this way: when you invest in a house, you're betting on its ability to provide shelter or rental income. When you invest in stocks, you're buying a share in a company's profits. But when you buy crypto, what exactly are you investing in? A future without banks? Autopia where everyone transacts in blockchain tokens? Or is it simply the hope that someone else will pay more for it than you did?