The New York Times newspaper published last Sunday a special report on the tax returns of the current president of the United States, Donald Trump. Apparently, in 2016, Trump only paid $ 750 in federal taxes. And that was a year in which he paid. According to the report, for the past 15 years, Trump did not pay taxes in 10 years. And, in the 5 years that he did pay taxes, he actually paid silly. In fact, any school teacher in the United States pays more taxes than Donald Trump.

Their statements reveal that The Trump Organization, in fact, loses a lot of money every year and the debts are up to their necks. Your properties are not making a lot of money. And they are losing value. Businesses managed directly by Trump such as his real estate, golf clubs and hotels have lost millions. According to the Times, between 2000 and 2018, Trump has lost $ 174.5 million. Golf courses, in particular, which cost $ 315 million, have been severely devalued in that period.

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On the other hand, his statements tell us that Trump is heavily in debt. His loans and other personal debts total $ 421 million. Its best known creditor is Deutsche Bank. However, the creditors are many. And it is very difficult to know for sure the complete list. From a financial point of view, The Trump Organization is a disaster.

The only branch of the business that has generated profits is his Reality Show El Aprendiz and his income as he lends his name. Yeah that’s right. Trump lends his name to builders from different parts of the world. They put everything. And Trump is cutting the ribbon during the inauguration and the building is called Trump this or Trump that. Trump Tower Moscow, Trump Tower Baku, Trump Tower Turkey, etc. Trump says that everything is his, but the truth is that everything is a show.

If we are guided by this report, it is clear that Trump is a terrible businessman. However, he is an excellent showman. We are not facing a Bill Gates, a Warren Buffett, a JP Morgan or a Henry Ford. In fact, we are facing a PT Barnum. Phineas Taylor Barnum (1810-1891) was an American businessman, politician, and circus performer known for his famous hoaxes. The subject is a legend in the entertainment world. Barnum was a quintessential showman.

Now, Donald Trump’s businesses lose money in significant amounts. Now let’s play the alternate universe. It’s 2013, and Donald Trump starts buying Bitcoin. How would your business be now? As a mental exercise, let’s travel back in time and set this scenario.

How did Trump build his empire? The Donald started out at his father’s real estate company, Fred Trump. The late Fred Trump developed middle-class housing projects in Brooklyn, Queens, and Staten Island. Everything seems to indicate that Fred Trump built his company practically from scratch through hard work. But Donald from a young age wanted to build in Manhattan and dedicate himself to the luxury sector.

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Donald Trump began with the remodeling of the Commodore Hotel in New York. Donald got a huge tax benefit from the city for investing in the hotel. This investment brought the hotel out of bankruptcy. And the place reopened with the name Grand Hyatt. Then Donald built the Trump Tower. With this project, Trump became a media phenomenon. That’s where the show began. Because the Donald has been everywhere ever since. How did you finance your projects? With loans. And his father as guarantor.

This is the secret of the real estate business. It is relatively easy to obtain a home loan because the property becomes the collateral and the banks They are willing to loan you the money. Then Trump bought two casinos in Atlantic City, Trump Plaza and Trump Castle. And soon after, he embarked on the Trump Taj Mahal project. At that time, Trump was so in debt that no bank wanted to lend him more money and he was forced to issue junks bonds. Before long, he declared bankruptcy.

In the early 1990s, Trump was in serious financial trouble. Hundreds of providers were left without their payment. But he eventually managed to pay off the bonds. As it did? Selling property and listing on the stock market. That is, the bonds were paid with the money of investors. On paper, Trump was worth “a lot” and his talent for selling himself as a successful man attracted a lot of people. Among businessmen, Trump is not a particularly successful subject. But, in the public imagination, Trump is Ricky Ricón.

After his bankruptcy, Trump didn’t do much about real estate or business for long. But he did a lot of commercials, cameos, interviews, and media appearances. Trump became a sensation primarily for his reality show, The Apprentice in 2004. The show’s producers redecorated his office and portrayed him as a super successful businessman. And most of the projects featured there were projects that only bore his name. Licenses.

The Trump story is certainly incredible. A showman who has managed to convince everyone that he is a genius in business. However, if we analyze their businesses, what we have in one ponzi scheme after another. And the only successful business is a television show and the sale of your name. All other properties have been bought with (excessive) debt and are losing money.

Seeing Trump in 2013 buying Bitcoin would not have actually been possible, because Trump is not an investor. You have no capital to invest. Trump is basically real estate debt. And royalties for intellectual property for his reality show and the Trump brand. In 2013, he would not have been able to buy Bitcoin. For a person mired in debt and on the verge of bankruptcy, Bitcoin is not a sensible alternative.

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Sure, you’ve always been able to buy Bitcoin with debt (or money you need to pay off your debt). In that case, Bitcoin’s appreciation would have been enough to change its finances radically. The problem is that Trump’s businesses operate like a ponzi scheme. So, What is better Bitcoin or a ponzi scheme? Bitcoin, of course.

But what if the scheme is in the works? So, money must be taken from the scheme to invest in Bitcoin hoping that Bitcoin will go up in price so that everyone can be paid. The matter would be so risky that this mental exercise has all become a mess. When everything is a great show, business is the show. And Trump is definitely the king of the show.

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