On July 12th, Beijing time, the US Congress, the Federal Reserve and Trump finally reached a "unified front" and jointly targeted Facebook's cryptocurrency Libra. At the same time, Trump also "declared war" to the entire cryptocurrency ecosystem such as Bitcoin. Earlier, the four major regulators in the US Congress also voiced a request to Facebook to suspend the development of Libra, waiting for regulatory approval, and yesterday, Federal Reserve Chairman Powell also said Libra must be approved before proceeding. The US Congress, the government, and the Federal Reserve have achieved an "unprecedented" pace.
Trump released a total of three related tweets today, and each one is clear and purposeful. To sum up, Trump's three tweets talked about three things: Bitcoin, Libra, and the US dollar. Of course, Bitcoin and Libra are all set to bring out Trump's "making the dollar great again." However, according to observations, the comments below Trump Twitter are almost entirely criticized. This time Trump's critics not only have criticisms of opposing party democrats, but also cryptocurrency supporters and Libra supporters.
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The first step: Bitcoin = air
Trump, the US president who was "famous" for "truthing the country," aimed at Bitcoin. He said that he is not a fan of Bitcoin, and that Bitcoin is not a "money". Bitcoin is highly volatile and is entirely air-based. Unregulated Bitcoin promotes illegal activities such as drugs.
This one has caused a response from Bitcoin supporters. Twitter users directly listed the yields of the US dollar and Bitcoin during Trump's tenure:
US dollar index: -4% US steel: -58% Bodi Energy (the largest coal producer in the US): -9% Bitcoin gain: 1186%
Another netizen said:
“Take some time to delve into the field of cryptocurrencies, and you'll find that some hard-working entrepreneurs are creating businesses that drive the next generation of financial technology innovation. Supporting it, people like me will use the wealth they create to create jobs.”
“You can stop Libra because it's centralized. However, you can't stop Bitcoin! This is freedom. The world's largest government can't stop people from trading with anyone they want, in whatever way they want. ""
The encrypted media "BitcoinMagazine" means:
“In-kind cash is the best tool for promoting drug trafficking and illegal activities, not a public ledger that records the history of each transaction.”
Some netizens said:
"Well, you lost the support of the liberals. (Alluding to the US election?)"
“'Based on thin air', haha. Bitcoin economics is more meaningful than continuing to print money on the Fed. Moreover, there is much more cash for “illegal activities” than bitcoin.”
Jesse Powell, CEO of the cryptocurrency exchange Kraken, said:
“Mr. President, the unregulated legal currency, such as the privately run US dollar, can also be said. The advantage of cryptocurrencies is that they are predictable and transparent. Whether or not they are regulated, useful tools can be used for good and evil. Don't let the US fall behind."
“Jesse is right. In terms of digital assets, the United States is falling behind. Soon, we may not be able to compete with the larger economy in this very important area of financial innovation. Talent and capital are already being lost in large numbers.”
Step 2: Libra has no reliability
Trump said that similarly, Facebook's virtual currency does not have any reliability, and Facebook wants to become a bank and needs to comply with the bank charter as other banks.
Just aim at Facebook's Libra, don't pull in bitcoin.
However, some netizens support Trump's point of view. He said:
"On this issue, I agree with Trump that Facebook just wants to circumvent regulation. Similarly, PayPal should be forced to apply for a banking license before starting business."
"Although I will get a lot of benefits from Libra, I agree. The Fed has a lot of shortcomings, but at least there are standards such as quantitative easing that need to be appeased. Facebook's own dollar casting will set a standard for others to follow. Hyperinflation Danger!"
"Although there is something in common with Bitcoin, @facebook's @Libra_ is different. Considering that all major contributors and partners can ensure Libra's pre-release, their @Libra_ will be more accessible. ”
Step 3: The US dollar is the only real currency in the United States, greater than any time in history.
Finally, Trump’s real purpose is the dollar. As the blood and energy needed in the operation of the United States, the President of the United States will certainly firm the "station" dollar, even if it is rumored that he intends to fire the "disobedient" Fed's current chairman, Powell. Trump said that the dollar is the only real currency in the United States, and it is stronger (in doubt) than at any time in history. It is the most dominant currency in the world (it is true).
However, like previous Twitter, Trump also suffered criticism from his opponents this time. But this time, he offended the entire cryptocurrency community and Libra's supporters.
"Actually, it's called the Federal Reserve Voucher, sir. According to the Constitution, the dollar is backed by gold and silver. Maybe you should think about your work, tell the bank and the Fed, and stop making your company. I was angry at the bankruptcy deficit."
"Do you mean the dollar? When the economy collapses, the Federal Reserve (fed) will cut interest rates to zero and use quantitative easing to print money out of thin air. When you push up inflation, you wait."
“How reliable is it in the face of depreciation of the dollar? This is just some empty talk that the private sector has issued on demand. No matter what happens to bitcoin, the dollar is unlikely to dominate in a century.”
"The dollar has no support. Since the gold standard, the dollar has only been a fraction of its value. Bitcoin is the best performing asset in a decade, and digital assets will one day replace everything."
“I don’t like legal tenders and other banknotes issued by the Federal Reserve. These bills are not money, their value is highly volatile, and they are based on thin air. Unregulated printing can fuel illegal behavior, including the drug trade and other illegal activities. ""
As the helm of the world's largest economy, Trump is arguably the biggest person ever to speak to Bitcoin. This will undoubtedly further enhance the visibility of Bitcoin. Although Trump criticized Bitcoin, it did not continue to fall after the release of Trump Twitter. However, before the release of Trump Twitter, the cryptocurrency market experienced a plunge, and many cryptocurrencies such as Bitcoin experienced With more than double-digit plunging, it is not known whether Trump is related to the market crash.