'I'm Not A Fan Of Bitcoin And Other Cryptocurrencies'

Libra Facebook Calibra Calibra

Libra Facebook Calibra Calibra

(Kitco News) - U.S. President Donald Trump said on Thursday that he is not "a fan of bitcoin and other cryptocurrencies", referring to the digital coins as "not money".

Despite the anti-crypto tone of the tweets, many members of the cryptocurrency community were impressed with their nuance and understanding that Libra and bitcoin are not the same.

The president criticized the assets for being "highly volatile" and accessible to criminals.

Next week, officials for Facebook's Libra will testify in front of US legislators to address their concerns around the systematic risk and privacy concerns a crypto backed by the social media giant poses. "Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity", he wrote.

Moreover, many cryptocurrency proponents similarly share concerns with Facebook's Libra project, as it entails a whole host of potential problems with centralization and privacy that cryptocurrencies like Bitcoin don't have. "If Facebook and other companies want to become a bank, they must seek a new Banking Charter and become subject to all Banking Regulations, just like other Banks, both National [and international]".

Trump ended the tweet thread by boasting of the United States dollar's dependability and reliability.

The American public and global community, the president argued, should use the "reliable" USA dollar instead, as he called for more federal regulations of peer-to-peer financial transactions.

Bitcoin and the aggregated crypto markets plummeted over the past day after BTC failed to stabilize in the $13,000 region and incurred a sudden influx of selling pressure that sent it spiraling downwards.

Despite this, the current narrative circulating on the web is that Fed Chairman Jerome Powell's recent comments on Facebook's Libra being risky.

At the time of writing, Bitcoin is trading down over 7% at its current price of $11,550, which marks a significant drop from its 24-hour highs of roughly $12,500 that were set yesterday.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. It is not a solicitation to make any exchange in commodities, securities or other financial instruments.