If it’s not apparent from the title then here it is once again: Donald Trump hates bitcoin and other forms of cryptocurrencies as well, including Facebook Libra. He is suggesting that these bitcoins are not real money and that the US dollar is the only real currency in the United States of America.
However, he has proposed a banking charter for cryptocurrencies in America. Donald Trump is not the only one who considers bitcoin and other currencies like it dangerous. Several international government officials, including Bank of England governor Mark Carney, have raised their concerns regarding Facebook’s cryptocurrency Libra.
Why Does Donald Trump Hate Bitcoin And Cryptocurrencies?
One assumption is that cryptocurrencies are a preferred mode of payment on the dark web where a lot of illegal activities take place. In his Twitter rant against cryptocurrencies, Donald Trump affirmed the same.
Trump then went on to explain how if Facebook and other companies want a virtual currency, then they should seek a banking charter and become subject to banking regulations.
Critics of Facebook and cryptocurrencies alike already have little faith in the company and its upcoming cryptocurrency. Interestingly, Facebook won’t be the only company in control of Libra, as several other companies will take ownership in handling it.
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On the flipside in India, which is also Facebook’s biggest market. all types of cryptocurrencies are banned.
How Dangerous is Bitcoin?
Bitcoin is a virtual currency and it is used to facilitate trade in some shady illegal areas. For that part, Donald Trump is right. What none of us know exactly is the scale of the illegal operations being carried out by Bitcoin or other cryptocurrencies.
Bitcoin isn’t only used in illegal trading, several legal transactions also take place through it. Big companies that consider Bitcoin as legal tender include Microsoft, Wikipedia, Subway, AT&T, etc.
Moreover, several people look at Bitcoin as not just virtual money but as a means of investment. Investing in Bitcoin is one of the most popular trends in the trade market. This is due to the highly volatile nature of Bitcoin, meaning it can go down in value as well as go really high up.
According to CoinDesk, the price of 1 Bitcoin at the time of writing this article is $11,346 or INR 7,77,427. On July 10 the price of Bitcoin was $13,021 or 8,92,198.
This constant changing nature of Bitcoin makes it dangerous and also gives it its rewarding appeal at the same time.
However, after Federal Reserve Chairman Jerome Powell had “serious concerns” regarding Facebook Libra, Bitcoin’s value saw a huge dip in 24 hours. And we cannot forget that Bitcoin became three times more valuable in the first half of 2019.