In his recent tweet, he claims that cryptocurrencies are not money given that they are highly volatile and based "on thin air". He further explained that these digital services and assets can "facilitate unlawful behavior". "Whatever Bitcoin morphs into, and however the broader crypto environment evolves, it's the future and in criticizing Libra and Bitcoin President Trump has given digital currencies the supreme validation they needed".
"We only have one real currency in the U.S., and it is stronger than ever", he tweeted. He made that much clear in a Thursday evening tweetstorm dunking on the latest proposed entrant in the digital currency world. The company has announced plans to introduce a cryptocurrency called Libra to the marketplace, just as soon as it gets approval. The cryptocurrency has more than tripled this year, recovering some of its losses from a 2018 crash, as the Libra project helped revive investor interest in digital assets.
The tweet was the first in a series of three, which went on to drop some hints as to why Trump chose today to add his voice to the governmental "bitcoin is not real money" choir.
Since June 27, the bitcoin price has dropped from almost $14,000 by more than 22 percent against the USA dollar in a relatively large pullback, leading the valuation of the crypto market to drop.
The U.S. Financial Stability Oversight Council, a panel of regulators that identifies risks to the financial system, is also expected to conduct a review.
You may have seen our story about Libra, Facebook's new cryptocurrency targeted mainly for developing countries where economic growth is at its fastest and population is denser than any other regions.
BTC is currently changing hands at $11,384 so it seems as though for now, the president's tweets are having no effect on short-term traders.
Trump is right when it comes to the increased volatility of cryptos, but the value of cryptocoins and blockchain technology doesn't just come out of thin air.
In an interview with Yahoo Finance, Tom Lee clearly agreed, and said, "On balance, it's a positive because cryptocurrencies and bitcoin really are in the main stage now - Congress, the Fed, the president weighing in".
The price of bitcoin and other cryptocurrencies barely moved on this news as of the time of President's Trump tweet.