The value of Bitcoin has recently fallen below $ 10,000, after President Donald Trump posted a criticism of the cryptocurrency on Twitter.
President Trump reports that he is "not a fan" of the cryptocurrency. What does this mean for Bitcoin investors?
What is Bitcoin?
A cryptocurrency is a digital asset that serves as an exchange medium and uses cryptography to secure financial transactions and control the creation (mining) of additional units. Bitcoin is considered the first cryptocurrency.
Bitcoin is a distributed digital currency without a central bank or a single administrator spending it. It can be sent from user to user in the peer-to-peer bitcoin network without the need for intermediaries.
The blockchain organizes all transactions in an irreversibly distributed database, distributed over nodes in the network, and is decentrally synchronized through proof-of-work. Bitcoin payouts are programmed to go to zero over time, so there will never be more than 21
On July 12, President Donald Trump tweeted that he was "not a fan of Bitcoin and other cryptocurrencies that are not money and whose value is very volatile and airborne."
I'm not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is very volatile and based on air. Unregulated crypto assets may encourage unlawful behavior, including drug trafficking and other illegal activities ….
– Donald J. Trump (@realDonaldTrump) July 12, 2019
On July 10, Bitcoin's price was more than $ 13,000, but suddenly it began to fall. A few days after the tweet of President Trump, he fell below $ 10,000. The American news channel CNBC reports that Trump's recent statement about cryptocurrencies may be the reason.
Armstrong answered Trump
Brian Armstrong, CEO of Coinbase digital wallet, said Bitcoin investors have nothing to fear. Bitcoin has been up more than 160% since the beginning of the year. The Bitcoin market is still relatively small and every time a large trade takes place this has a significant impact on the value of Bitcoin.
It's not uncommon for the price of a bitcoin to rise or fall dramatically overnight – in fact, this has happened several times since the launch of the cryptocurrency in 2009.
Armstrong responded to President Trump's tweet that it was an "achievement unlocked" with a seated president responding to the growing use of cryptocurrency. He added:
First they ignore you, then they laugh at you, then they fight you, then you win.
Success unlocked! I dreamed of a seated US president who years ago had to respond to the growing use of cryptocurrency. "First they ignore you, then they laugh at you, then they fight you, then you win." We have just made it to step 3. Https://t.co/N3tzUKELaK
– Brian Armstrong (@brian_armstrong) July 12, 2019
Analysts have largely attributed the rise in digital coins to the news that Facebook has been implicated in the announcement of the Facebook Libra into space.
What is Facebook Libra?
19659004] Libra is a new digital currency proposed by Facebook and officially announced on June 18, 2019. To date, the currency and the network do not yet exist and the launch is planned for 2020. More than 2.7 billion people use Facebook, WhatsApp, Instagram or Messenger: Libra looks at a huge potential market every month.
Libra can be used on the company's Facebook and other apps. It is also expected to work on affiliate sites such as eBay, Uber and Coinbase. Libra is a medium of exchange through which users can send money and make transactions.
Facebook is also planning a digital wallet called Calibra, which will be available in Messenger and WhatsApp, as well as in a stand-alone app.
Still "safe" to invest
Since the president's last rant, Bitcoin is on the rise again. Experts agree that it is still a good investment to buy Bitcoin or even Libra when the time comes.
Investments always run the risk of losing your money, and you can never rule that out entirely. Make sure you do a thorough research before investing and spend your money wisely.
Disclaimer: The information contained herein is provided "as is" without regard to your personal circumstances and should not be construed as financial advice, investment advice or offer or solicitation for transactions in cryptocurrencies.