This article explores the evolution of cryptocurrency, focusing on Donald Trump’s shifting stance towards Bitcoin as he aims to position the U.S. as a crypto powerhouse. It highlights the volatility of the crypto market and its ties to political changes. The article also examines the detrimental impact of the FTX collapse on the industry and public perception, revealing deep-rooted issues within crypto management.
The cryptocurrency market has seen significant fluctuations since Bitcoin’s inception, evolving into a complex political entity. Supporters view cryptocurrencies as revolutionary financial instruments that allow users to bypass traditional banking restrictions. The advent of decentralised finance (DeFi) highlights this ethos, asserting that financial autonomy can be achieved without the constraints imposed by centralised banks. Proponents argue that crypto remains the quickest and most cost-effective method for global money transfers.
The volatile nature of the cryptocurrency market is mirrored in Donald Trump’s fluctuating stance on digital currencies. Initially sceptical, Trump characterised cryptocurrencies as a threat to U.S. currency. However, by 2025, after his return to the presidency, he advocates for the U.S. to become a global crypto leader. The bitcoin market responded dramatically, soaring above $100,000 following his electoral success, illustrating the link between political developments and crypto valuations.
The crypto industry’s reputation is marred by its association with wealth generation and fraud. The dramatic collapse of the FTX exchange in November 2022 resulted in bankruptcy and exposed significant mismanagement, particularly through founder Sam Bankman-Fried’s misappropriation of billions in customer investments. The scandal highlighted deep issues within the industry, where a culture of false confidence and misleading practices contributed to a severe loss of public trust in digital currencies.
