The US President Donald Trump tweeted that he was not a fan of Bitcoin or other cryptocurrencies, since he does not consider them money and says that their value is highly volatile and based on air. He argues that unregulated crypto assets can contribute to unlawful behavior, including drug trafficking, among other illegal activities.
He also said that Facebook’s Libra, like other virtual currencies, would have little reputation or reliability. He explained that if Facebook and other companies want to become banks, they should seek a new Banking Charter and become subject to all the Banking Regulations, the same as other Banks, both National.
It was announced that on July 16th and 17th there would be a hearing in the United States Congress on the Facebook Libra. This report caused the price of Bitcoin to plummet below US $10 thousand. A few days before, Bitcoin was around US $13 thousand.
After Bitcoin’s Fall
Many wondered if they should sell their Bitcoin after that fall below US $10 thousand. It is worth noting that Bitcoin usually falls before a hearing in Congress. In 2018, Bitcoin dropped from US $6,820 to US $6,070 days before the Committee of Financial Services held a hearing on “crypto as a new form of money.”
Similarly, Bitcoin fell from US $12 thousand to US $6 thousand before the hearing of February 8th, 2018, where the Securities and Exchange Commission (SEC) chairman and the head of the Commodity Futures Trading Commission faced the Senate Banking Committee. However, as the hearing was positive for Bitcoin, it kept rising to US $11,700 until February 20th.
What is next for Bitcoin?
Many fear that the cryptocurrency version of Facebook is detrimental to the industry. For Instance, it is not exactly like Bitcoin, which is decentralized by nature. Instead, there are companies like PayPal, which can increase interest in them. On the other hand, it is feared that Facebook may influence countries.
John McAfee, known for his antivirus software, boldly predicted that Bitcoin is about to reach $ 1 million by 2020. He said that Bitcoin is hovering around US $10,500 and many people are already worried. He added that Bitcoin is increasing drastically and he is still positive about the US $1 million price by the end of 2020. Similarly, he believes that alternative currencies such as MTC and Apollo will increase ten times more.
Even bolder is the prediction that, in about 10 years, there will be no fiat anywhere in the world and that all economic transactions will be made through cryptocurrencies.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, has a similar bullish prediction for Bitcoin, which says that Bitcoin is expected to reach US $100 by 2021.
Bitcoin will possibly continue rising to exceed the all-time high. In 2017, it was observed how Bitcoin rose in value mainly due to FOMO. Cryptocurrencies became mainstream and people started investing without even understanding the technology behind it. Scams and even useless tokens have become rampant. It only remains to hope that the market has really matured.
By Willmen Blanco