What the Crypto Price Reaction to Trump’s Tweet Really Means

Now, I don’t believe that any government has the power to completely stamp out and destroy cryptocurrencies. They do, however, clearly still can ban …

Earlier this week, the inevitable finally happened: the President of the US, often considered the most powerful man in the world, declared publicly his strong opposition to cryptocurrencies. This naturally caused a large stir in the community, with pundits and fans around the world tripping over each other to opine, virtue signal, and generally just get in on the action. This was huge, with a formerly fringe technology getting the highest kind of attention possible. This could be very good, or very bad.

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….

— Donald J. Trump (@realDonaldTrump) July 12, 2019

What followed, however, wasn’t anything nearly as apocalyptic or amazing as one could have predicted. In the markets, nothing much really happened. No significant price hop or dump took place, leaving a muted reaction everywhere except Twitter, for the most part. Why was this? What can we learn from this statement of strong opposition and its aftermath?

The obvious: the powers-that-be don’t like competing systems

Thanks for reaching out to us. Unfortunately, Wells Fargo does not allow transactions involving cryptocurrency. -Josh

— Ask Wells Fargo (@Ask_WellsFargo) July 12, 2019

To get the most apparent out of the way first, it’s very evident that government and its banking bedfellows don’t like competition. The ability to print money from nothing, as well as reverse, alter, or otherwise steal transactions and funds, is very useful to the biggest player in the room, i.e. the state, and banks are the vehicles by which this is possible. Both are threatened by a system that bypasses them and disallows these nefarious actions. Nothing much more to say on that.

For whatever reason, government doesn’t feel it can outright ban crypto

Now, I don’t believe that any government has the power to completely stamp out and destroy cryptocurrencies. They do, however, clearly still can ban them, their purchase, their ownership, and their use in commerce, for whatever practical effects such an action may or may not have. What’s interesting is that, largely, they have chosen not to do so at this point. Particularly in the US and Europe, regulations behind cryptocurrencies seem to be fairly minimalist, largely consisting of “Don’t use it to dodge taxes or launder fiat currency.” Banks have reacted with hostility, governments have spoken out, yet no serious regulatory or criminal action has been enacted en masse.

Jeremy has it right. Crypto isn’t under attack in the US, had never been. The regulators have been amazing. The problem lies with shady business practices. https://t.co/s8mLK6yAIC

— Emin Gün Sirer (@el33th4xor) May 28, 2019

This likely means that governments have weighed the benefits versus the drawbacks of antagonistic action and have decided that they shouldn’t ban crypto. Maybe such an action would prove ineffective and cause them to look incompetent, losing legitimacy in the eyes of the people. Maybe it would cause cryptocurrencies to grow more rapidly, hastening the undermining of the banking system. Maybe it would prove effective in pushing money to other, more lenient jurisdictions. Maybe they still do not perceive a great threat and don’t want to be caught on the wrong side of a technology destined for global popularity. Whatever the reason, despite strongly-worded opposition, they have decided to essentially do nothing. As a result, the price did not tank since a crackdown was evidently not feared.

Bitcoin isn’t “dangerous money” anymore

The initial value proposition behind Bitcoin was its promise of decentralized, peer-to-peer digital cash that no one could censor. This is still true of many cryptocurrencies such as Dash and Bitcoin Cash, but the originator, and industry leader, doesn’t quite claim this distinction anymore. What fans likely envisioned when a sitting US President got around to slamming Bitcoin was an unstoppable digital cash revolution taking fire. Now, nearly every single person tweeting saucy quips at Trump is still hopelessly dependent on the fiat currency system, banks, and payment processors that such tough talk has lost a lot of its meaning. The price would have likely gone far up from this vindication of becoming a threat to the status quo if Bitcoin had still been useful for peer-to-peer electronic cash.

People who disagree on many things across crypto still agree on why it’s valuable

If you were wondering why cryptocurrency REALLY has value, there it is: it makes the powerful terrified that people will be able to use it to simply be free. Participate in the infrastructure of freedom. Join the decentralized evolution! https://t.co/CcDbCPKDIi

— Joel Valenzuela (@TheDesertLynx) July 12, 2019

Crypto Twitter is often described as a thunderdome: all coins and their fans enter, no one leaves alive. From Bitcoin maximalists hating on everything that doesn’t have a BTC ticker to Bitcoin SV and Bitcoin Cash fans fighting it out, to Dash users criticizing the usability as a payment system as competitors, there’s lots of disagreement and fighting between the various crypto tribes. Do we want electronic cash or store of value? How important is privacy? How decentralized is good enough? Whatever the issue, it seems like we can all agree on why we’re here in the first place: revolutionary decentralized tech that no one controls, no one can stop us from using, and no one can take away from us. This one vision seems to unite us all.

Trump wants you to stop using the money you value. Crypto never wants you to stop using what you value. Long crypto, short the banks and their protectors.

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Hackers Stole $32 Million Worth of Crypto from BITPoint

In yet another incident of massive crypto theft, BITPoint has reportedly been robbed of around $32 million worth of cryptocurrency. The investigators …
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In yet another incident of massive crypto theft, BITPoint has reportedly been robbed of around $32 million worth of cryptocurrency. The investigators who are investigating this fraud have found that hackers got access to the BITPoint system for around 12 hours and in that period, this whole cryptocurrency fraud was executed. The parent company of the BITPoint announced on Friday that hackers stole cryptocurrency worth $32 million from its account in the intervening night of Thursday and Friday. Scammers hacked the system in the Thursday evening and till the Friday morning, the access to the system remains with hackers, providing them more than enough time to execute this scam. Among the cryptocurrencies stolen, Ripple and Bitcoin are the prominent names although, in total, five different types of cryptocurrencies were stolen by fraudsters.

In-depth Details

According to the Yoshinori Hashimoto, an expert in the field of online security, the theft involved a transfer of the cryptocurrencies worth $9 million on the Thursday at 9:00 pm. Just so you know, Hashimoto focused only on the transfer of Bitcoin by hackers. Over the period of the next 12 hours, more digital assets were transferred to accounts of hackers and according to the estimate; Bitcoin worth $25 million was lost by BITPoint in this theft.

An important observation from the Hashimoto points towards laxity on the part of BITPoint. According to the Hashimoto, half of this loss could be averted BITPoint taken a proactive approach and stopped all the transactions once it detected the abnormality in the transactions. The company identified that the transactions were abnormally large in terms of volume of cryptocurrencies involved and at that point, the company should have stopped all these transactions. Another important point for cryptocurrency exchanges is to keep in mind that the online system is very much prone to hacking and despite all the safety measures, exchanges, as well as the users, must be very careful all the time during transaction time. There is a need to have a proactive safety mechanism which should detect a transaction involving a large volume of crypto and automatically snap such transactions if some abnormality is detected.

Implications

The implications of these kinds of incidents are far-fetched. Thinking that its effect will remain confined only to users of BITOint is not right as the overall repercussions will go beyond and have a negative impact on the whole crypto industry. Not only investors will lose their confidence, but also the general public will continue to remain skeptical about whether they should adopt the digital coins or not. Therefore, it is the larger responsibility of all the stakeholders in the crypto universe to work towards a safe and secure cryptocurrency trading experience. Both a high degree of safety measures and advanced level of proactive behavior are required to stop the crypto frauds and theft incidents. Policymakers too need to contribute to making the whole cryptocurrency experience safer by putting out stringent rules and regulations regarding the operating procedure related to cryptocurrency exchanges. Before permitting to exchange is to carry out the business, they must be tested for a high degree of deterrence against forgery and fraud cases.

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Wells Fargo Won’t Allow Customers To Buy Bitcoin

For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the …

Wells Fargo, a huge traditional bank founded in 1852 to provide banking services, and mail delivery through the Pony Express, has recently come out stating that it does not allow its customers to purchase Bitcoin with their own funds.


Wells Fargo ‘Does Not Allow Transactions Involving Cryptocurrency.’

Wells Fargo’s decision diverges from other leading financial institutions, who are becoming increasingly pro-crypto technology. For example, Nasdaq CEO Adena Friedman believes in the value of cryptocurrencies and predicts that Bitcoin could be the “global currency of the future.”

The CME Group saw Bitcoin promise when it started exchanging Bitcoin futures contracts in December 2017.

On the other hand, after bashing Bitcoin for years, JPMorgan Chase CEO Jamie Dimon made a U-turn by regretting having called the cryptocurrency a fraud, and now JPMorgan Chase is getting ready to release its own cryptocurrency.

Most recently, during his second day of testimony in the U.S. Senate, Jerome Powell’s testimony legitimized Bitcoin and as a store of value.

In contrast, Wells Fargo is turning in the opposite direction. Specifically, Wells Fargo displays its anti-Bitcoin stance by not allowing its customers to perform transactions involving cryptocurrencies, as the tweet below shows,

Thanks for reaching out to us. Unfortunately, Wells Fargo does not allow transactions involving cryptocurrency. -Josh

— Ask Wells Fargo (@Ask_WellsFargo) July 12, 2019

This prohibition is contrary to Wells Fargo’s vision, which states, “Customers can be better served when they have a relationship with a trusted provider that knows them well, provides reliable guidance, and can serve their full range of financial needs.”

However, by forbidding a customer from performing transactions in Bitcoin, Wells Fargo is not serving its customers’ “full range of financial needs.”

Bitcoin and other cryptocurrencies are risky and volatile

In June 2018, Wells Fargo banned the purchase of Bitcoin and other crypto-assets using Wells Fargo credit cards. When the ban was announced, a company spokesperson stated,

“Customers can no longer use their Wells Fargo credit cards to purchase cryptocurrency […] We’re doing this in order to be consistent across the Wells Fargo enterprise due to the multiple risks associated with this volatile investment. This decision is in line with the overall industry.”

When Wells Fargo claims that Bitcoin and other cryptocurrencies are risky and volatile, it may be forgetting its prominent and infamous role during the 2008-2009 financial crisis, when markets collapsed. As a result, millions lost their homes, and millions lost their jobs, producing economic mayhem all over the world.

But astonishingly, although Wells Fargo was a contributor to one of the largest-ever financial crises, and after a series of financial scandals, U.S. taxpayers had to bail out the bank.

Wells Fargo received USD 25 billion of Emergency Economic Stabilization Act funds through a preferred stock purchase by the U.S. Treasury Department. As CBS News put it,

“Wells Fargo hit the jackpot. It was one of the first banks to get bailout funds – the biggest amount awarded in a single shot: $25 billion tax dollars.”

Nevertheless, to return to its admirable roots and to satisfy its customers’ needs, Wells Fargo should join the bandwagon of the new economic model, which requires a decentralized, borderless, and secure digital currency, such as Bitcoin.

Why do you think big banks such as Wells Fargo do not allow transactions involving Bitcoin? Let us know in the comments below!

____________________________________________________________________

Images via Twitter/@Ask_WellsFargo

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Bitcoin Value Will Surge 500-1000 Percent By Next Halving: BTC Bull Barry Silbert

With a 220 percent year-to-date return, Bitcoin is still the best performing asset of 2019 in both the traditional and cryptocurrency markets, …
Bitcoin-Will-Surge-1000-Percent-By-Next-Halving-Barry-SilbertBitcoin-Will-Surge-1000-Percent-By-Next-Halving-Barry-Silbert

With a 220 percent year-to-date return, Bitcoin is still the best performing asset of 2019 in both the traditional and cryptocurrency markets, outperforming many others by a long mile. However even with this evidence, many are still quite unwilling to accept the sector’s advantages and still make speeches that disparage Bitcoin and the sector. In the past, more than a few naysayers have called crypto many different names. Some have called it a Ponzi scheme, a waste of time and recently, Kevin O’Leary described cryptocurrency as “non-compliant stuff” for “drug dealers.”

Perhaps the most used bullet shot at the sector is its volatility and up till today, many still bring up the bear market of 2018 especially because Bitcoin hit its all-time high a few months before the bear market started. With all of this much negative talk, Bitcoin is still shooting higher with its current year-to-date returns and adoption of the coin

Why This Much Success?

Even if you’re not entirely convinced that Bitcoin is the next best thing since sliced bread, you have to wonder how come the asset has achieved so much success. If you think about it, it’s difficult to believe all the people who are definitively convinced that bitcoin is a scam. At the moment, Bitcoin’s market cap is more than $207 billion and there’s still a lot more money coming in.

Furthermore, there’s much more recorded institutional investment in the number one coin and the crypto sector with these numbers constantly increasing. How can it still be a scam if real traditional companies are jumping in?

According to Barry Silbert, the CEO and Founder of digital currency group:

“If you look at the history of Bitcoin trading, there were 80% drawdowns in the price after all-time highs. Once the market got comfortable that the lows were in, they brought some excited enthusiasts and their money back into the asset class.”

Furthermore, Silbert spoke on possible reasons for Bitcoin’s increase. He mentioned certain factors that happen from time to time and a very good example is the economic tussle between the U.S. and China. As earlier stated, it is also true that there are a lot more investors, both institutional and individual, in the sector. Notable mentions here include Fidelity Investments, TD Ameritrade and Bakkt, with these firms making plans to attract more investments as 2019 continues.

The Upcoming Bitcoin Halving

Silbert also said “a lot of investors know that in 2020 there is a halving event” as part of the growth factors for Bitcoin and its investments. The Bitcoin halving is an event that takes place after every 210,000 blocks are mined which takes four years. The next one is set to take place in May 2020 and with this, block rewards for miners would be halved like it happens every four years.

This also directly means that there will be some scarcity for the coin and based on the regular laws of supply and demand, a reduction in supply almost always means a significant rise in value. Since it happens at every Bitcoin halving since inception in 2009, 2020 will not be any different. Silbert said:

“Each time that has happened in the past, the price of Bitcoin has gone by 500-1,000 percent afterward.”

Also adding that many investors are entering the sector in anticipation of the halving, he added

“I think there is definitely some buying happening right now.”

Before the next Bitcoin halving, the coin is expected to easily attract a lot more investment which, according to some analysts, could push the price all the way up to its previous all-time high of almost $20,000.

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Digital Assets Will Cause Millennials To Dump Gold For Bitcoin- Barry Silbert

Barry also founded and is the CEO of Digital Currency Group, a global enterprise building, supporting and investing in over 140 companies across the …

Popular Bitcoin enthusiast and crypto investor, Barry Silbert, during an interview with Inside the Icehouse earlier Thursday, has expressed his opinions about world gold reserves and how Bitcoin would come to replace fiat and many other popular assets including Gold in years to come.

Barry, The Crypto King

Barry Silbert, known by some as “the crypto king” is the Founder and CEO of Grayscale Investments LLC, the parent company of Grayscale bitcoin trust.

Barry also founded and is the CEO of Digital Currency Group, a global enterprise building, supporting and investing in over 140 companies across the globe including Coinbase and Ripple.

New York Fed, World’s Gold Largest Depository

Speaking on the world’s gold reserve as a store of national value for countries and how these countries might need the bitcoin alternative in the future, the Federal Reserve Bank of New York was made a major point of reference.

For the records, the Federal Reserve Bank of New York is the largest depository of monetary gold. Sitting on around 497,000 gold bars with a total weight of 6190 tons buried 50ft below sea level, the New York Fed acts as gold custodian for account holders like the U.S. and the governments of other countries.

Gold Slowly Declining In Availability

According to the report, the history of this enormous gold city dates back to World War II when most countries sought a safe place to store their gold. As of 1937, the mass of gold present at this location was more than 12,000 tons, an amount twice as much as the present reserve. As this world gold reserve continue to decline slowly, more declination is expected to come in years. This then begged the question of what would replace this reserve when all the gold storage is out!

XAU/USD Performance

Recently, gold caught a bullish trend in the stock exchanges and this caused quite a roar as to which was better when compared to bitcoin. Several arguments were put forward along the lines of availability, volatility, acceptability and monetary value. While some bitcoin pessimists maintained that bitcoin was too volatile as a medium of exchange and therefore not a typical currency, bitcoin backers countered by arguing the security, ease of movements and returns on investments side of the story. This was on for some time.

Bitcoin’s Adventure

Bitcoin too has been bullish for a while after its bearish season of 2018. Although not much happened as to touching its all-time high, it touched a significant $13k USD price in June, a point many thought bitcoin would never rise to again!

Bitcoin Is Readily Available With Fixed Total Supply

However, Barry’s point of view remains understandable and quite straightforward. Bitcoin is definite in supply, easy to transact, readily available and secure(as long as a user stores private keys securely). This relative properties of bitcoin to gold would account for much availability of bitcoin against gold in coming years. Also, as against gold, the total supply of the world bitcoin is certain and increasing value is highly speculated. According to Barry, this would make for a good asset useful as a store of national value in the long run.

Bitcoin Taking Over

Barry, in his opinion on bitcoin taking over fiat and even gold, said there would be no more fiat in years to come and few countries have already recognized the truth. Countries like Venezuela and China are looking into developing national cryptocurrencies in preparation for the crypto revolution. Others will follow the trend too, according to Barry.

It is clear that cryptocurrencies are here to stay as an asset class… It is clear that Money is going digital. It is clear that, in the future, physical cash is gonna go away… You know, from history over 500 years, the average life of fiat currencies is 27 years…

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Digital Assets Will Cause Millennials To Dump Gold For Bitcoin- Barry Silbert
Article Name
Digital Assets Will Cause Millennials To Dump Gold For Bitcoin- Barry Silbert
Description
Popular Bitcoin enthusiast and crypto investor, Barry Silbert, during an interview with Inside the Icehouse earlier Thursday, has expressed his opinions about world gold reserves and how Bitcoin would come to replace fiat and many other popular assets including Gold in years to come.
Author
Dare Shonubi
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Coingape
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DisclaimerThe presented content may include the personal opinion ofthe author and is subject to market condition.Do your market research before investing in cryptocurrencies.The author or the publication does not hold any responsibilityfor your personal financial loss.
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