For the first time ever, Donald Trump, President of the world’s largest economy, the United States, breaks his silence over the future of Bitcoin and Libra – and not in a good way!
No one is ignorant enough to not know that Bitcoin is a decentralized digital currency and is not guided by a central banking framework. This precisely became his talking point. On Twitter, he lambasted the crypto king as a zero-value currency.
I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
While Trump highlighted the already pronounced facets of the cryptocurrency, such as being highly unpredictable, unguarded, holding no intrinsic value, and vulnerable to crimes, the crypto supporters did not hold back their opinions.
https://twitter.com/TheMitchellnMan/status/1149472776152993797
In response, they too lashed out at his short-sightedness and inability to retain dollar power.
This is a major mistake on your part and shows a lack of vision!
— Cernovich (@Cernovich) July 12, 2019
Trump takes on Libra
For a man who was believed to have won the presidency largely due to Facebook’s network and access to information, his reaction over the company’s one-of-its-kind, blockchain-based global currency Libra, comes as a shocker.
….Similarly, Facebook Libra’s “virtual currency” will have little standing or dependability. If 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…
— Donald J. Trump (@realDonaldTrump) July 12, 2019
It is speculated that the response was triggered by Facebook’s announcement of launching Libra in 2020, with extensive backing from other large corporations.
Trump concluded the argument stating that the nation will continue to see only one fully-regulated, dependable, and the most tradable currency – that is the US dollar! He proudly claimed it to be the world’s leading reserve currency.
…and International. 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!
— Donald J. Trump (@realDonaldTrump) July 12, 2019
Trump echoing Obama’s thoughts?
To some extent, Trump’s remarks on digital economy reiterate the sentiments of a former US President. In 2016, Barack Obama expressed his concerns surrounding digital currencies’ encryption and its reliability.
However, his following quote on Bitcoin’s soundness was completely unpredictable and uncanny.
“Because if the government can’t get in, then everybody’s walking around with a Swiss Bank Account in their pocket.”
Although cryptocurrencies are still in their incipient stages, with some of them already showing promising future prospects, Trump’s public condemnation does manage to muller the reputation to some degree. While the statement does not dampen the spirits of avid crypto traders, it may avert crypto investment plans of many.
