Boosting Bitcoin: Is Trump making America part of a giant crypto scam?

The hedging argument is based on the finite supply of Bitcoin. If there is a relationship with inflation, however, it is probably a negative correlation. Crypto assets don’t generate income, and when inflation is rising, so do interest rates. As a result, the opportunity cost of holding, say, Bitcoin also increases – and therefore, its price deflates.
Trump, who used to dismiss crypto assets as a “scam”, is now a convert, even if he hasn’t explained why he converted, other than that the Biden administration was sceptical of the sector and wanted to tighten regulation of it.
Where’s the rationale for a strategic reserve of digital assets?
A national strategic reserve, Trump said on Truth Social, would “elevate this critical industry after years of corrupt attacks by the Biden administration.”
That the sector backed him financially, with donations of more than $US100 million ($161 million) to his election campaign, has been cited as a reason. He does, of course, have more direct financial exposures through his family’s 75 per cent stake in cryptobank World Liberty Financial and he and his wife Melania’s meme coins (launched just ahead of his inauguration, despite the obvious conflicts). Trump Media has also announced plans to spend big on digital assets.