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The attention around Bitcoin and cryptocurrencies this week has been incredible. The focus on both seemed to have stepped up sometime around the time when President Donald Trump (or someone in his media team) tweeted out to the public that he was not a fan of Bitcoin or cryptocurrencies.
He continued to talk about Facebook and their plans to create their digital asset Libra.
“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 and International.”
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
After Trump’s quotes about Bitcoin, the cryptocurrency stumbled, briefly falling below $10,000. CNBC was sure that this was in direct relation to the President’s tweets.
Next was Jerome Powell’s statement before the Senate Banking Committee where he compared Bitcoin to gold.
“I think things like that [the obsolescence of today’s reserve currencies] are possible but we really […] haven’t seen widespread adoption. Bitcoin is a good example, almost no one uses it for payments […] it’s a speculative store of value like gold.”
Once again, Bitcoin seemed to regain lost traction, recovering from a similar drop in price, yet again under the $10,000 mark – after prices had reached $13,000 just a few days earlier.
Trump was then joined by Treasury Secretary Steven Mnuchin who stated that he had “very serious concerns” about cryptocurrencies.
So at the beginning of the week, we could see factions in the US government work to bring down Bitcoin and make a bearish case for cryptocurrencies.
Competition from cryptocurrencies and Bitcoin’s decentralized nature are a welcomed addition
Fast forward a couple of days and we could see further fuel being added to the Bitcoin and cryptocurrency discussions.
“I like Bitcoin.” – House Minority Leader Kevin McCarthy
House Minority Leader Kevin McCarthy told CNBC that he was a fan of Bitcoin and the decentralized nature of blockchain, the technology behind it. He also shared his thoughts about the upcoming cryptocurrency from Facebook, Libra. He’s not a fan.
“When I’m on Facebook, I’m not the customer, I’m the product. Facebook is free because they sell your data to make money. Now they want to get into the business, and they’re not bitcoin, in this Libra. They’re not decentralized.”
He was joined by former presidential candidate and former Congressman Ron Paul.
“I’m for the least amount of regulation. I don’t know what’s gonna happen to cryptocurrencies. I think it’s a great idea. And I only have one rule: no fraud … I think that the government has a role. And [if] somebody has a case that there is fraud, I think it should be investigated … What I want to do is legalize the freedom of choice, absent blatant fraud.”
Paul, who was less negative about Libra than McCarthy, believes it could help open up the market and bring down the government’s monopoly on fiat currencies.
“Historically, governments always have to have monopoly control over money and credit. That’s why we have a Federal Reserve instead of allowing the market to operate.”
Founder of Go CryptoWise, a cryptocurrency and tech fan who wants to see better and smarter products and services that make our lives better and easier.