Over the last few days, President Donald Trump unleashed a scathing attack on cryptocurrency.
In fact, he branded them as “unregulated crypto assets” based on thin air, tweeting:
“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.”
All of which appears to have been sparked by unease around Facebook’s Libra cryptocurrency, which even Federal Reserve boss, Jerome Powell said, “raises many serious concerns.” He added he doesn’t think the “project can go forward” until such issues are addressed.
As a result of the bearishness, Bitcoin (BTC) fell from a high of $13,159 to $10,571.
- Ethereum (ETH) fell from $318 to $238
- Ripple (XRP) fell from 41 cents to 31 cents
- EOS (EOS) fell from $7.40 to $4.30
- Litecoin (LTC) fell from $140 to $90.72
- Cardano (ADA) fell from 10 cents to six cents
At the same time, President Trump just made cryptocurrency a 2020 election issue.
By even mentioning cryptocurrency, Trump provided valuable recognition to the industry.
“Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago,” tweeted Coinbase CEO Brian Armstrong. “First, they ignore you, then they laugh at you, then they fight you, then you win.’ We just made it to step three.”
In addition, other presidential candidates have an opportunity to respond to Trump’s critique.
Democrat Andrew Yang, for example has noted, “The blockchain has a wealth of potential,” as quoted by Forbes. “it could make things more secure and transparent.” Democrat Tulsi Gabbard has reportedly been an investor in cryptocurrency, buying Ethereum and Litecoin in 2017.
Even Fundstrat Global Advisors’ Tom Lee is shrugging off the bearish comments.
“On balance, it’s a positive because cryptocurrencies and bitcoin really are in the main stage now — Congress, the Fed, the president weighing in,” he said, as quoted by Yahoo Finance. “It’s going to force everybody who is not involved — and remember a very small percentage actually cares about crypto and bitcoin — it’s going to force the other 98% of the world to think about what it means.”
Now that President Trump has made cryptocurrency a valid issue, other presidential candidates may now lend a voice to digital currency in responses.