What Trump's Bitcoin Tweet Changes

Let's be clear: It was not the substance of Donald Trump's tweet that made his critique of bitcoin and Libra so important last week.

From a price perspective, Trump's disparaging remarks are, on balance, positive for bitcoin.

Why is a Trump tweet-shame positive for bitcoin's price? Well, bitcoin must stay relevant to succeed, and this was, at the very least, an acknowledgement from the halls of power of its relevance.

Powell wasn't saying that he saw bitcoin as gold-like per se; it was a reference to how most bitcoin's users currently treat it and, in that sense, he was simply stating a fact.

If we think of how gold has been used during the fiat currency era - as protection against the political risks inherent in national currencies - then this one-two punch could hardly be better for those arguing that bitcoin should play that role in the 21st century.

It's clearly what inspired Trump to take to Twitter, given that his three-tweet post included a line saying that Libra "Will have little standing or dependability" and would need to seek a banking charter if it is to operate.

As gatekeepers of the dominant fiat currency system, banks - and, by extension, the political leaders who determine how to regulate them - can make it harder for people to use both decentralized cryptocurrencies like bitcoin and corporate-backed private currencies such as Libra.

Most cryptocurrencies, whether bitcoin or Libra, are based on open-source software.

Thank to Libra - but really, thanks to bitcoin before it - the narrative economy around monetary innovation is getting seriously amplified.

As the noise level rises, more and more people will inquire and explore alternatives to mainstream currencies such as bitcoin.