Trump Contends USD Will Stay Dominant and that Bitcoin is based on Thin AirJuly 13, 2019
Trump is not a fan of Bitcoin. He stated, “Value is highly volatile and based on thin air.” Trump recently expanded his thoughts on crypto stating Facebook “will have little standing or dependability.” He further noted that the company should seek out to a charter to be regulated just like any other traditional financial institution.
Trump stated, “We have only one real currency in the USA, which is stronger than ever, dependable and reliable. By far, the most dominant currency in the World, and it will always stay that way. It is called the United States Dollar.”
There have been sharp fluctuations in the price of Bitcoin. The volatility has been insane. There were robust gains and severe losses with the back and forth swings.
Jeff Dorman from Arca stated, “No new money came in or out… it was just levered bets. And levered bets cause massive volatility on the way up and down.” The leverage is one of the driving factors of the price fluctuation of Bitcoin.
One of the cryptocurrency investors stated, “The market will likely retrace before fall this year.” A confluence of factors will likely cause a real bull market during the beginning of 2020.
Jerome Powell, Federal Reserve Chairman, compares Bitcoin and Gold. He stated that “It’s a speculative store of value.” He also felt, “Almost no one uses Bitcoin for payments, they use it more as an alternative to gold.”
Brew Dog, The Scottish beer for people, recently stated that investors could invest in BrewDog using cryptocurrency.
In a press release, the company stated, “This is the best next step for us as a business. James and Martin started BrewDog to serve an alternative to the status quo; to challenge perceptions and revolutionize their industry. The developers, miners, and users of cryptocurrency are the same. Joining forces linking old and new financial systems is a perfect fit.”
The higher lows pattern on the Bitcoin chart continues to be intact. The Outlook continues to be Bullish after the significant drop over the past 24 hours.
Bitmain recently lost $150,000 as it mined an invalid Bitcoin block and it was hurting for the company as Bitcoin rejected the block after it was extracted. All the resources spent mining the Bitcoin were mostly wasted.
Trade wars and easy money are converting major cryptocurrencies to safe havens. The strong dollar and high carry cost are making gold lose its luster as a haven.