Donald Trump Tweets About Bitcoin – CrescentCrypto
On July 11th, Donald Trump tweeted that he was ‘not a fan’ of Bitcoin and other Cryptocurrencies. He described the asset class as too volatile, not money, and with no underlying value. Trump went on to claim that crypto-assets facilitate unlawful behavior, such as the drug trade. He continued his tweet thread with thoughts on Facebook’s Libra condemning Facebook and other companies wanting to become banks without a Banking Charter. Trump stated that the U.S has only one real currency called the USD. He signed off his statement with a highly nationalist notion of USD describing, “It is by far the most dominant currency anywhere in the World, and it will always stay that way.”
Donald Trump’s state signals multiple developments in the crypto-asset industry. First, regulatory and government attention is accelerating at a greater pace than many have predicted. The sitting president mentioned cryptocurrency. This is an incredibly symbolic milestone. Second, many prominent Bitcoin investors stated that this was highly bullish for Bitcoin. This is due to the president likely continuing policies supporting the current macro backdrop that has painted a bullish signal for Bitcoin. As for Trump’s statements on Libra, it is highly notable the impact that Libra has had on bringing cryptocurrency onto the U.S mainstage. This is further illustrated by Libra’s recent senate banking hearing.
What Happened?
David Marcus, head of Calibra, sat before the Senate Banking Committee to address the government’s concerns over Facebook’s Libra network. A particularly evident concern was user privacy. To this point, David Marcus claimed that any competitor can develop a Libra compatible wallet. Therefore, Facebook can not misuse user data as users will simply switch wallets. With that said, integrating Calibra with Facebook’s application ecosystem gives Facebook a sizeable advantage. Here are some more notable clarifications made by Marcus. One, Marcus believes the U.S. should lead the world in rule-making for cryptocurrencies. Two, Libra will comply with all U.S. regulations and not launch until the U.S. lawmakers’ concerns have been answered. Three, Facebook is only one of 28 current and potentially 100 or more Libra Association members and thus it won’t have any special privileges. Lastly, Calibra does not intend to directly monetize user data, though if it offered additional financial services in partnership with other financial organizations it would ask consent to use their data for those purposes.
Why Does This Matter?
These developments reveal much-needed clarity on the Libra project, while also bringing regulatory attention to the greater crypto-asset ecosystem. Regarding Marcus’ comments, it is clear the Libra will work hand-in-hand with the US government. People attracted to the decentralized ethos of Bitcoin, should not look to Libra as a replacement. A full-fledged functioning Libra protocol will have user data directly served to the government and prominent corporations. Hopefully, this hearing further shows the senate committee members the clear dichotomy between Libra and Bitcoin. Libra can have profound benefits, with that said, if completely under the regulatory scrutiny and U.S control its value proposition diminishes significantly.
What Happened?
During Federal Reserve Chairman Jerome Powell’s testimony before the Senate Banking Committee, he stated “almost no one uses bitcoin for payments, they use it more as an alternative to gold,” he said Thursday afternoon, “it’s a speculative store of value.” Barry Silbert of Digital Currency Group whose company coined the phrase “drop gold”, sees this development as a strong confirmation of Bitcoin’s value proposition as a store of value asset. Powell said he can envision a return to an era where multiple currencies are used in the United States, and that “the size of Facebook’s network means it could be, essentially, immediately systemically important.” Even with backlash from the committee regarding privacy, money laundering, and consumer protection, Powell spoke favorably about Bitcoin and other cryptocurrencies.
Why Does This Matter?
The cumulative development of prominent government members addressing Bitcoin and cryptocurrency illustrate the move out of nascency for digital assets. It can no longer be ignored. Spurred by Facebook’s Libra, President trump and Jerome Powell commenting on Bitcoin’s source (or non-source) value have brought cryptocurrency regulatory frameworks into the forefront. It remains to be seen if Libra has a positive or negative impact on Bitcoin regulations, but hopefully, it is the former. Yesterday, Meltem Demirors, of CoinShares, helped expressed the clear difference between a central authority based digital asset in Libra, and a 10-year old decentralized asset in Bitcoin.
Subscribe to Crescent Talks Crypto
Published at Thu, 18 Jul 2019 18:08:29 +0000
Bitcoin Pic Of The Moment
By btckeychain on 2019-05-18 09:58:03
