Donald Trump earned substantial goodwill from bitcoin Bitcoin advocates when he appeared at the Bitcoin 2024 conference. His presence there signaled to many that he might be coming around to the importance of bitcoin, especially as the conversation around sound money continues to evolve in political and economic circles. His recent alliance with Robert F. Kennedy Jr., who has been outspoken about bitcoin’s critical role in the future of the U.S. economy, further bolstered the belief that Trump was beginning to understand bitcoin’s unique potential. Yet, with the announcement of his family’s new decentralized finance (DeFi) project, World Liberty Financial, this positive momentum is at risk of slowing down or even stopping entirely.

The project, which ties Trump’s name to a crypto initiative rather than bitcoin, threatens to confuse and alienate his supporters — both bitcoiners and his conservative base. Worse yet, this misguided foray into the world of DeFi could reinforce dangerous misconceptions, leading his most ardent backers to miss out on the opportunity that bitcoin presents as a hedge against inflation and a pathway to long-term, generational wealth.

Bitcoin Is Not Crypto

The first and most critical point to understand here is that bitcoin is not crypto. This is a distinction that has become increasingly clear to those who study the space, yet it’s one that many still fail to grasp. Bitcoin stands alone as a decentralized, deflationary, and censorship-resistant store of value. It is not reliant on centralized governance, nor does it need constant tinkering with its monetary policy to maintain its integrity. Bitcoin’s fixed supply of 21 million coins and its decentralized infrastructure make it sound money, fundamentally different from the speculative and often risky projects seen throughout the broader cryptocurrency space, especially in the world of DeFi.

DeFi platforms like World Liberty Financial are fueled by a completely different set of values and starting assumptions. These projects, which tend to be short lived and risky, have a track record of coding errors, hacks, and governance failures. The fact that Dough Finance, the precursor to World Liberty Financial, was hacked for almost $2 million in July further illustrates the risks inherent to this sector. Unlike bitcoin, which has proven its security and resilience over the past 15 years, DeFi projects often stumble, leaving investors exposed to catastrophic losses.

Confusing His Base and Losing Bitcoiners

Bitcoin is not just another asset; it represents a separation of money from state— a principle that aligns deeply with conservative values of individual liberty, limited government, and economic sovereignty.

When Trump spoke at the Bitcoin conference, many in the bitcoin community began to view him as a potential ally in their fight for financial opportunity. His growing partnership with RFK Jr., who has spoken intelligently about the value of bitcoin as a tool for protecting civil liberties and preserving economic freedom, gave further hope that Trump was beginning to recognize bitcoin’s potential to reshape the U.S. economy for the better.

By associating himself with World Liberty Financial, Trump is inadvertently lumping bitcoin together with speculative DeFi tokens in the minds of his followers, despite the fact that the two couldn’t be more different in terms of risk, philosophy, and long-term viability.

Worse yet, Trump’s decision will confuse his MAGA Point Bridge Gop Stock Tracker ETF and conservative base, many of whom are just beginning to entertain the idea that Bitcoin could be a viable alternative to gold. Gold has long been the default “sound money” for conservatives, valued for its scarcity and historical role as a store of value. Convincing these traditionalists to see bitcoin as the future of sound money has been a slow but steady process. Trump’s association with World Liberty Financial risks setting back this progress by muddying the waters — associating the gold-like properties of Bitcoin with the speculative frenzy of crypto projects.

Short-Term Gain, Long-Term Risk

Trump may see a short-term financial gain from this venture, as hype-driven investors pour into this project. But the long-term negative consequences could be substantial. Not only will Trump risk losing the support of bitcoiners, but he will also erode trust among his conservative base, especially those who are beginning to understand bitcoin’s potential.

If World Liberty Financial fails, as many DeFi projects do, Trump’s base may mistakenly credit this failure to inherent risks with all digital assets – risks that bitcoin itself does not have. If conservatives turn away from bitcoin, they will miss out on the profound benefits it offers: sound money that is deflationary, unconfiscatable, and a hedge against the eventuality of a currency crisis in the U.S. This would be a massive lost opportunity to leverage bitcoin as a tool for preservation of American values through a turbulent time.

Trump’s Bitcoin Policy: The Road to Redemption

This isn’t necessarily the end of the road for Trump or his movement. He has made missteps in the past and managed to recover. It’s worth noting that many strong advocates for bitcoin, including Michael Saylor, once dismissed its potential. Saylor famously tweeted that bitcoin would go the way of online gambling, only to later become one of its most vocal proponents. Similarly, Elon Musk has recently stumbled by endorsing Dogecoin Dogecoin , a project with no use case and no future, despite previously being bullish on bitcoin.

Trump, like others, may come around to see the difference between bitcoin and the speculative world of DeFi. The concern, however, is that Trump’s influence is so vast that his endorsement of a project like World Liberty Financial could cause many of his supporters to be misled on a massive scale. This could delay the inevitable adoption of Bitcoin and harm the very values that both Trump and Bitcoin advocates support—financial sovereignty, sound money, and the separation of money from state.

In aligning himself with World Liberty Financial, Trump risks undermining not only his credibility with bitcoiners but also the long-term financial well-being of his supporters. Bitcoin is not crypto, and any attempt to conflate the two only serves to mislead those who are just beginning to understand the profound opportunity bitcoin offers. Trump’s venture into DeFi is a step in the wrong direction, one that could cause lasting damage to both the MAGA movement and the broader push for sound money. The hope among conservative bitcoiners now is that Trump will see the error of this path and, like others before him, come to fully understand that bitcoin — not crypto — is the future of finance.