Bitcoin Price Goes Up After Donald Trump Says Cryptocurrencies Aren’t Money

The US president has made his first-ever public comments about Bitcoin and cryptocurrencies, stating that they “are not money” while their “value is highly volatile and based on thin air.”

Taking to Twitter in early hours on Friday, Donald Trump said:

“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.”

After falling down close to $11,000 on Thursday evening, the price of Bitcoin not only stayed unaffected by Trump’s comments, but even went up to over $11,700 on Friday morning, with the following correction taking it slightly below $11,600.

US president meanwhile also took aim Facebook’s Libra project, insisting that the world’ largest social network and other token issuers must “face global regulations” if they intend on “becoming banks.”

….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

Donald Trump further added that there’s only one real and most dominant currency in the USA and globally, and that’s USD.

…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

Cryptocurrency enthusiasts have taken to social media to denounce the president’s comments, but just as many said that the outburst will likely be a blessing in disguise – helping grant cryptocurrency with further acknowledgment and exposure.

“Well done (Donald Trump) for bringing more awareness to (Bitcoin),” one popular response read, sharing data from Google Trends.

CEO of Coinbase Brian Armstrong meanwhile said he always dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago.

Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago. “First they ignore you, then they laugh at you, then they fight you, then you win”. We just made it to step 3 y’all. https://t.co/N3tzUKELaK

— Brian Armstrong (@brian_armstrong) July 12, 2019

Others tried to convince Trump to reevaluate, including Tron CEO, Justin Sun, who invited him to his existing charity dinner showdown with another Bitcoin critic Warren Buffett.

Mr. President, you are misled by fake news. #Bitcoin & #Blockchain happens to be the best chance for US! I’d love to invite you to have lunch with crypto leaders along with @WarrenBuffett on July 25. I guarantee you after this lunch, nobody will know crypto more than you!

— Justin Sun (@justinsuntron) July 12, 2019

Trump’s comments come one day after the Federal Reserve chairman, Jerome Powell, told lawmakers that Facebook’s plan to build a digital currency called Libra cannot move forward unless it addresses concerns over privacy, money laundering, consumer protection and financial stability.

Powell said the Fed has established a working group to follow the project and is coordinating with other government’s central banks. The US Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to make a review.

Facebook announced last month it would launch its global cryptocurrency in 2020. Facebook and 28 partners, including Mastercard Inc, PayPal Holdings Inc and Uber Technologies Inc, would form the Libra Association to govern the new coin. No banks are currently part of the group.

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