President of the United States of America, Donald Trump has states that he does not endorse cryptocurrencies. He said that he is not a fan of Bitcoin or blockchain-based digital currencies because they are highly volatile in nature.
Trump took to Twitter for expressing his views over the digital currencies and wrote, “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 activities.”
The Bitcoin fellbelow $10,000 on Monday, and another weekend sell showed the digital token plunged by more than 20%. Where Ethereum decreased to 17% and Litecoin fell to 13%.
And these collapses of the bitcoin started after the President criticized the digital coins. Trump emphasized on the fact that Bitcoin and other cryptocurrencies are based on thin air and said that these digital currencies facilitate illegal activities. Moreover, this comment could make a debate among all Democratic presidential candidates over the country on cryptocurrencies or on the technologies like blockchain.
“Companies like Facebook want to become a bank then they must pursue a new banking charter and be the subject to all banking regulations, likewise other banks.” Trump words.
In the wake of Trump’s statement, senior market analyst of Oanda Corp in Toronto Alfonso Esparza stated that, the comment of Donald Trump will put the bitcoin downward, or it could fall up to $8000.
Facebook is yet to disclose its stance over Trump’s comments and it remains to be seen whether Trump’s statement has any effect on Facebook’s plans of issuing digital currencies.