In late 2017 and early 2018, the most prevalent cryptocurrency, as well as the entire tech industry surrounding Bitcoin, were experiencing their brightest days. Within just a few months, global popularity has led to a rise in the cost of a single token of over $ 20,000 and an evaluation of all projects to over $ 900 billion.
There are many known Bitcoin trading platforms which can make the most of the features that are characteristic for Bitcoin, but also for all other cryptocurrencies, that favor their use: trading at any time, 24/7 availability model, high flexibility as a typical result of low liquidity, and low risk compared to other financial market instruments.
However, since 2018, due to trends that are very well known to the public part of the stock market, as well as numerous condemnations and news about the way to categorize this investment and tax it, Bitcoin and other cryptocurrencies are failing to regain equal popularity among investors to this day.
Libra vs. Bitcoin
What the near future of digital tokens may look like in this regard may be hinted at in the latest wave of criticism from Federal Reserve (the central banking system of the United States) Chairman Jerome Powell over Facebook’s plan to launch its own cryptocurrency. This social network wants to launch its digital token along with a consortium of companies. It is planned that the “Libra” becomes a token linked to a group of national currencies and debt securities (so-called Stablecoin), in order to minimize its exchange rate fluctuations. Powell said that Libra raises serious concerns about privacy, financial stability, money laundering, and consumer protection. These issues need to be handled comprehensively and publicly. CNBC described his words as a “cold shower” for Facebook’s plan.
Shortly after his comment, the U.S. President Donald Trump spoke on the subject for the first time, revealing that he wasn’t a fan of Bitcoin and cryptocurrency, in general, as well as Facebook’s token launch ideas. Trump tweeted that unregulated cryptocurrencies are often a tool used for illegal activities such as money laundering and narcotics trafficking. He added that whoever wants to become a digital bank will have to seek official permission from state and international regulatory agencies. Trump stood in defense of America’s currency by writing that there is only one currency in the United States, which is stronger, reliable, and dominant in use more than ever before, and that’s the U.S. dollar.
Wave of Enthusiasm
After this series of statements, Bitcoin, which recorded a meteoric rise just two years back, fell 12 percent in just 24 hours and the price of one token was about $11,600 at that time, according to CoinDesk. On the other hand, this is a significantly higher valuation compared to the beginning of the year, and the relative growth of Bitcoin in 2019 is about 300%.
Also, on numerous portals and forums of cryptocurrency investors and fans, both statements were greeted with a wave of enthusiasm, because the Facebook currency was never considered decentralized by this community, nor did it contain other elements that define the cryptocurrency’s value system by their criteria. They view Donald Trump’s criticism as a great signal to all liberals and his opponents that the time has come for them to engage in the “global financial revolution” led by Bitcoin. From a technological point of view, the number of positive announcements is on the increase, as the largest cryptocurrency transmitter on the planet, the popular Coinbase, announces the promotion of new cryptocurrencies in its exchange office, with the possibility of buying them directly from a bank account. The news that the Apollo Guidance Computer, which was used during the moon landing mission, was rescheduled for Bitcoin mining, was relatively recent, giving blockchain technology additional tailwind from the scientific community.
Depending on which side of this debate you belong to, you’ll look at the future of digital currencies with different eyes.