US President Donald Trump, who is more vocal about his feelings and thoughts than many, finally spoke about Bitcoin and cryptocurrencies. He not only gave his views in general but also spoke negatively about Facebook’s cryptocurrency plans with Libra.
While his views were not favorable towards Bitcoin or any cryptocurrency, it hardly had an effect on prices over more than $50. The price of Bitcoin at 2: 45 Hours UTC on 12th July 2019 is 11,380. It is trading 4.72% lower on a daily scale.
This is probably the first time that the President of the United States has spoken about Bitcoin and cryptocurrencies. Facebook’s crypto plans with Libra have primarily influenced it. The announcement has shaken the Financial Services industry. However, his views also had a silver lining to it – that he did not announce any sanctions or propose any strict laws over cryptocurrencies.
Moreover, while he spoke against Bitcoin and cryptocurrencies, it cannot be entirely seen as a regulatory threat – his views summarized the general rhetoric against Bitcoin’s volatility and intrinsic value.
Donald Trump noted in his tweet that “he is not a fan of Bitcoin or cryptocurrencies.” According to him, their value is based on “thin air,” and it is “highly volatile.”
Furthermore, he also said that
Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity
According to his, Facebook’s new “virtual currency” will have little standing or dependability. Nevertheless, he also acknowledged the competition that cryptocurrencies are currently posing to the banks. He said,
Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National and International
On Crypto’s Use as Currency and the US Dollar
While he did not comment on Bitcoin’s utility as a store of value. He spoke about the application of cryptocurrencies in payments. Not surprisingly, he was only in favor of the United States Dollar and asserted its dominance. He said,
We have only one real currency in the USA, and it is stronger than ever, both dependable and reliable. It is by far the most dominant currency anywhere in the World, and it will always stay that way. It is called the United States Dollar!
Find the link of the Twitter thread here.
Do you think Bitcoin or Libra or any other cryptocurrency will be able to thrive under such regulatory oversight? Please share your views with us.
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Nivesh from Engineering Background is a full-time Crypto Journalist at Coingape. He is an atheist who believes in love and cultural diversity. He believes that Cryptocurrency is a necessity to deter corruption. He holds small amounts of cryptocurrencies. Faith and fear are two sides of the same coin. Follow him on Twitter at @nivishoes or mail him at nivesh(at)coingape.com