Analysis: Trump's embrace of Bitcoin could be the biggest "pump and dump" in history

01/17 09:38

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Gary Smith, an economics professor at Pomona College, and Jeffrey Funk, a winner of the NTT DoCoMo Mobile Science Award, wrote that Trump's embrace of Bitcoin could be the biggest "pump and dump" in history. If the US federal government spends trillions of dollars buying Bitcoin, it will definitely push up the price of Bitcoin. But how can the US government repay its national debt by buying Bitcoin at an inflated price? Perhaps Trump is envisioning a "pump and dump" scheme. In a "pump and dump" scam, a group of scammers spread false investment rumors while trading at increasingly high prices, attracting unsuspecting investors. When the price is inflated, the conspirators sell their shares to the victims.

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