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The value of Bitcoin recently dropped below $ 10,000 after President Donald Trump published a cryptocurrency review on Twitter.
President Trump reports that he is "not a fan" of cryptocurrency. What does this mean for Bitcoin investors?
What is Bitcoin?
A cryptocurrency is a digital asset designed to function as a means of exchange that uses cryptography to secure financial transactions and control the creation (extraction) of additional units. Bitcoin is considered the first cryptocurrency.
Bitcoin is a decentralized digital currency with no central bank or single administrator issuing it. It can be sent from user to user on peer-to-peer Bitcoin network without intermediary.
The blockchain organizes all transactions in a database that is irreversibly distributed and distributed across multiple nodes in the network. It is synchronized in a decentralized way via a so-called work validation. Payments in Bitcoins are programmed to reach zero over time, so there will never be more than 21 million Bitcoins.
Trump Tweet
On July 12, President Donald Trump tweeted that he was "not a fan of Bitcoin and other cryptocurrencies, which are not money, and whose value is very volatile and based on tunes ".
I am not a fan of Bitcoin and other Crypto – currencies, which are not money, and whose value is very volatile and based on the air layer. Unregulated cryptographic assets can facilitate illicit behavior, including drug trafficking and other illegal activities.
– Donald J. Trump (@realDonaldTrump) July 12, 2019
On July 10, the price of bitcoin was over $ 13,000, but it suddenly began to fall. A few days after President Trump's tweet, he fell below $ 10,000. The US news channel CNBC reports that Trump's latest speech on cryptocurrencies may be the reason.
Armstrong answered Trump
Brian Armstrong, CEO of coinbase digital currency, said that investors in Bitcoins did not have to worry. Bitcoin is still up more than 160% since the beginning of the year. The Bitcoin market is still relatively small and whenever a major market occurs, it has a major impact on the value of Bitcoin.
It is not unusual for the price of a bitcoin to increase or decrease dramatically overnight – it's actually happened several times since the crypto-currency was launched in 2009.
Armstrong responded to President Trump's tweet saying it was an "unblocked achievement" with an incumbent president responding to the growing use of cryptocurrency. He added:
First, they ignore you, then they make fun of you, then they fight you, then you win.
Success devoured! I dreamed of an American president in place to respond to the growing use of cryptocurrency years ago. "First, they do not know, then they make fun of you, then they fight you, then you win." We have just arrived at step 3 and all of you. Https://t.co/N3tzUKELaK
– Brian Armstrong (@brian_armstrong) July 12, 2019
Analysts attribute much of the increase in digital currency to the announcement of Facebook's commitment to space with the announcement of Facebook Balance.
What is Facebook Balance?
Libra is a new digital currency proposed by Facebook and officially announced on June 18, 2019. To date, the currency and the network do not exist yet and the launch is planned for 2020. With more than 2.7 billion Facebook, WhatsApp, Instagram or Messenger users every month, Libra is looking into a huge potential market.
Libra is designed to be used in Facebook and other applications of the company. It should also work on partner sites such as eBay, Uber and Coinbase. Libra is a means of exchange allowing users to send money and internal transactions.
Facebook also has projects for a digital wallet called Calibra, which will be available in Messenger and WhatsApp, as well as in a standalone application.
Always "safe" to invest
Since the president's last speech, Bitcoin has started to climb again. Experts agree that the purchase of a bitcoin or even Libra remains a good investment when the time is right.
By investing, there is always a risk of losing money, and you can never completely eliminate that risk. Make sure you do serious research before you start investing and use your money wisely.
Disclaimer: The information contained in this document is provided without regard to your personal circumstances and therefore should not be construed as financial advice, investment recommendation, offer or solicitation of any transaction in crypto-currency.
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