Mitchell Feierstein to Newsmax: Cryptocurrency 'a Hedge Against US Dollar Declines'

Mitchell Feierstein, a cryptocurrency fund manager, told Newsmax on Tuesday that it's "a good idea" for people to invest in cryptocurrency, as former President Donald Trump has done, calling it "a hedge against U.S. dollar declines."

"Well, if you think about U.S. dollar hegemony, and what's been going on with the massive amount of debt that we have, people want to diversify out of the U.S. dollar," Feierstein said during an appearance on Newsmax's "American Agenda." "So, it's no surprise that people would look at crypto. I think the two winners in crypto will be Bitcoin and Ethereum. Now, making a big deal about a million dollars' worth of cryptocurrency, when your overall portfolio is billions of dollars, is statistically insignificant, that amount. I think it's good for people to diversify. I think that Bitcoin and cryptocurrency right now are speculative instruments that are highly volatile, and the volatility hasn't been harnessed yet."

According to Trump's latest financial disclosure documents, the former president now owns between $1 million and $5 million in Ethereum, a type of cryptocurrency. The investment marks a big shift from when he first took office and said digital currency was "a scam."

Feierstein said that it's "a good idea to have a position in a decentralized cryptocurrency," but stressed that there are a lot of "cryptocurrencies out there that are fraudulent."

"I think if you stay with the main ones, and you treat it as a speculative investment, as diversification in your portfolio, you can't lose," he said. "Just don't put too much money into it. I think it's a good idea to do that and it's a hedge against U.S. dollar declines. As you see today, the U.S. dollar dropped a lot because they're anticipating the Fed is going to cut interest rates. They shouldn't, and if they do it's going to be political."

Trump officially reversed his previous position and came out in favor of cryptocurrency and "the right to digital assets" during last month's Republican National Convention in Milwaukee. He also amended the GOP platform to state "Republicans will end Democrats' unlawful and un-American crypto crackdown and oppose the creation of a Central Bank Digital Currency.

"We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their digital assets and transact free from government surveillance and control."

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