Trump says cryptocurrencies are too volatile, based on 'thin air'

Lloyd Doyle
July 13, 2019

Committee Chairwoman Maxine Waters expressed concern about the social-networking giant's plans for the token and questioned Powell about the Fed's thinking on it. Waters and others Democrats have been critical of Facebook's strategy, and she said the company may ultimately want "to establish a parallel banking and monetary policy system to rival the dollar".

However, Powell emphasized that it does not mean crypto assets would not succeed and if they begin to receive widespread adoption, the USA could see a return to the era of having many different currencies.

President Trump slammed the cryptocurrency market on Thursday, claiming that the digital assets are "not money" and their value is "based on thin air".

Google searches for the phrase "bitcoin" has shot up after Trump's tweets.

In under an hour on June 12 at 8.15pm ET (1.15am BST), the bitcoin price dropped £500 in 45 minutes, before another surge brought prices back to the $11,400 level.

For his part, Trump isn't just hostile toward Libra.

The American billionaire leader has slammed the growing popularity of cryptocurrencies, stressing that digital assets only facilitate illegal activity and are made out of "thin air" - unlike, of course, the "reliable" United States dollar.

Bitcoin did not react to Trump's anti-crypto comments, last trading almost up 1% on the day at $11,447, according to Kitco's aggregated charts.

"Facebook Libra's "virtual currency" will have little standing or dependability".

Industry executives generally responded positively towards the remarks of Powell on the acknowledgment of bitcoin as a store of value and an alternative to gold, indicating that the perception of the public and the authorities toward crypto assets may be changing.

This has been interpreted as hardening this year as the crypto markets continue to prove the sceptics wrong. The cryptocurrency community thanked him for the free publicity.

The post Donald Trump attacks Bitcoin appeared first on Coin Rivet.

The US Federal Reserve has also weighed in.

The ubiquity of smartphones means digital wallets for Libra could expand the use of banking, credit card services and e-commerce in developing nations.

Other reports by Iphone Fresh

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