- Trump talked about Bitcoin saying it has no intrinsic value
- He has also mentioned that the real currency is the U.S. dollar
Bitcoin (BTC), the largest digital currency in the market, has been in the media during the last days not only for the volatility that experienced but also because the U.S. president, Donald Trump, wrote a Tweet about it. The president of the U.S. said that he is not a fan of Bitcoin and other cryptocurrencies and that they cannot be considered money.
Trump Slams Bitcoin
In a recent tweet uploaded by Mr. Trump, he said that he is not a fan of Bitcoin and cryptocurrencies and that they are not money. In addition to it, he said that their value is volatile and based on thin air. He has also attacked them by claiming that they facilitate “unlawful behavior,” such as drug trade and other illegal activities.
However, the U.S. dollar can also be used with ease to perform illegal crimes and activities. Criminals would clearly perform their crimes using different currencies, and both the U.S. dollar and the Euro help individuals perform illegal activities as well.
He went on saying that Libra, Facebook’s recently released virtual currency, will have “little standing or dependability.” He explained that if Facebook or other companies in the market want to become a bank they will have to follow banking regulations in a similar way as other banks do.
Facebook has decided to release a digital asset called Libra that would be used by individuals around the world to perform transactions and pay for goods and services. Although the virtual currency has not yet been released to the market, there is a lot of speculation about it and how countries will regulate it.
He ended the series of tweets by saying that there is only one real currency in the United States and that it is stronger than ever. Moreover, he mentioned that the U.S. dollar is the most dominant currency anywhere in the world and it will always be like that.
A few days ago, the U.S. Federal Reserve Chairman Jerome Powell, commented on Bitcoin saying that in the future there might be a moment in the U.S. in which several currencies will be operating together, as it already happened in the past. He has also compared Bitcoin to gold rather than considering it as a means of payment.
On the matter, Powell mentioned during a Senate testimony:
“If we do see widespread adoption you could see a return to an era in the United States where we had many different currencies in the so-called national banking era.”
Bitcoin is starting to play an important role in geopolitics. The president of the United States talking about it a few days after the chairman of the FED considered it a “speculative store of value,” is something that should call the attention of analysts.
The cryptocurrency analyst Luke Martin, wrote on Twitter that with the tweet written by Donald Trump, another nation can publicly announce its support for the digital asset.
“From taboo, to fringe finance, to now a geopolitical chess piece that governments and central banks have to consider,” he commented.
Although Trump didn’t mention anything about it, most of the mining activities on the Bitcoin network take place in mainland China. This is why there are many individuals that claim that Bitcoin is centralized and that any decision that China takes could certainly affect the network as a whole.
Joe Kernen, the co-host of CNBC’s Squawk Box, explained that cryptocurrencies are the first money in the world that is not governed by a legal-regulatory institution but by mathematics. This is certainly real. It is something that worries many nation-states due to the fact they do not have control over it.
Furthermore, the Bitcoin bull Max Keiser believes that if Bitcoin is adopted by nations, it could help the digital currency reach $100,000 in the future.
There are different countries around the world that are trying to find a way to depend less on the U.S. dollar but that would allow them to move funds from one country to another. This is why they are also thinking about embracing Bitcoin.
At the time of writing this article, Bitcoin is being traded around $11,565 and it has a market capitalization of over $206 billion, according to CoinMarketCap.
Author: Carl T