Trump launches a coin: Why is it not just as simple as 'Be Played for Suckers'?

Recently, news about Trump personally launching a coin has caused a stir. Everyone is asking: how could a former president be involved in being played for suckers? After all, his identity and the concept of launching a coin seem a bit incompatible. However, upon closer analysis, perhaps his move can be understood as having deeper economic considerations. Today, let's take a closer look and see why Trump wants to launch a coin personally.
1. The Past and Present of MAGA
First of all, let's talk about MAGA (Make America Great Again), which is Trump's campaign slogan. We are all familiar with it, right? But you may not know that this slogan is actually a tribute to Reagan. Reagan's slogan during his 1980 presidential campaign was 'Let's Make America Great Again'. In other words, Trump is drawing on history - like Reagan, Trump also wants to make America rise again through his own policies.
But this time, 'Make America Great Again' is not just empty talk. In 2024, the United States is also facing significant international competition pressure. Reagan faced the Soviet Union at that time, while Trump's competitors are China. Reagan dragged the Soviet Union down and consolidated America's global leadership position during his 12 years in office. Trump may also be considering whether he can reshape America's global dominance through 12 years of policy layout.
2. US Debt Crisis: The End of a Cycle
To understand Trump's next move, we need to first look at the economic problems in the United States. The core issue in the United States today is that the debt is too high and there are too many dependents. In simple terms, the U.S. finances are already overwhelmed.
Back after World War II, the United States maintained its global hegemony by issuing bonds and "throwing money" at the world. But by 2024, the US debt has reached a dangerous tipping point, and the interest on US debt repayment alone will exceed $1 trillion, accounting for a quarter of the annual income of the United States! This situation is clearly untenable, and action must be taken.
3. MAGA New Era: Taxation and Coin Distribution
Trump's think tank apparently realized this problem, so they decided to no longer 'raise little brothers', but to take more aggressive measures to rewrite the rules. How to do? First, impose taxes - reduce imports and increase exports. However, relying solely on tariffs may not necessarily solve the problem. So, Trump is preparing to open up a new path for American technology companies: issuing coin.
You heard it right, issuing coin! Cryptocurrency coin can be traded as a "commodity" through the regulatory rules of the CFTC (Commodity Futures Trading Commission). In this way, whenever a US company sells coins to foreigners, it is equivalent to "exporting", and other countries cannot easily impose tariffs! This is a clever move for the United States - it can increase revenue and reduce trade deficits at the same time.
4. Why does Trump support CFTC regulation instead of SEC?
The details here are also important. The reason Trump supports CFTC regulation of cryptocurrency coins instead of SEC is that the regulatory model of CFTC makes it easier to trade cryptocurrency coins as commodities. Once cryptocurrency coins are seen as commodities, attracting foreign capital through selling coins is like earning US dollars through exports. And the advantage of this method is that it is difficult for other countries to impose tariffs on US coins!
Among them, AI and cryptocurrency have become the "magic weapon" of American technology giants. For example, OpenAI's ChatGPT only makes $4 billion a year, but if OpenAI issues coins, the revenue may multiply several times in the same way that every user interaction consumes coins! This method of earning is obviously much easier than selling subscription services.
5. Trump personally launches coins, dispelling concerns.
The current problem is that although Trump supports this policy, many technology companies are still hesitant to issue coins. After all, the previous crackdown by the SEC on the cryptocurrency industry was not a joke. However, Trump's personal endorsement of issuing coins as a former president means that he has enough political support behind him, which can make other companies put aside their concerns and follow suit.
However, although Trump's coin currently has a market value of about 40 billion US dollars, the amount of funds attracted is not enough. It really needs to rely on selling coins to attract the inflow of US dollars, at least reaching a scale of several hundred billion US dollars. So, don't rush. If you miss the opportunity of Trump, there may be more tech giants following up next.
In summary, the reason why Trump personally launched a coin is not simply 'Be Played for Suckers', but to address the economic difficulties of the United States and promote the new era of MAGA. He has opened up new sources of income for American companies through cryptocurrency, while also reducing the pressure of U.S. debt. Let's see if other giants will follow suit in the future!
#$TRUMP回調後能重回高點嗎？