According to Fox Business, former U.S. President Donald Trump referred to Bitcoin as a “fraud” that affects the value of the USD.
In an interview with Fox, Former President Trump also expressed his desire for the USD to become the international currency.
Shortly after this statement, the price of Bitcoin plummeted more than 11% during the session on June 8, 2021.
Trump’s comments came after news that El Salvador plans to officially recognize cryptocurrency in the market. The price of Bitcoin has been steadily declining since early May 2021 and has yet to recover.
The main reason for this decline is due to China tightening regulations, banning Bitcoin mining as well as cryptocurrency payment services to support the new cryptocurrency issued by its central bank. Additionally, billionaire Elon Musk’s withdrawal, announcing a halt on accepting payments in Bitcoin, has also caused the market to crash.
The Threat to All Currencies?
Justin Urquhart Stewart, founder of Seven Investment Management, believes that Bitcoin poses a threat to all currencies because it is not based on any financial foundation, relying entirely on the trust of players and the endorsement of celebrities like Elon Musk.
“Bitcoin is very dangerous because it creates unreliable transactions and is not based on any real value,” Stewart emphasized.
According to this founder, many Bitcoin players are like gamblers, and they don’t care whether it’s cryptocurrency or not. All these Bitcoin players care about is making quick profits. A large number of tech-savvy young people are quite fond of cryptocurrency, but this is dangerous as they lack in-depth financial training.
“They understand very well how to trade in the market to make profits, but they have no concept of creating long-term prosperity,” founder Stewart remarked.
In agreement, Neil Wilson, market analyst at Markets.com, believes that Bitcoin cannot threaten the USD’s position because it is not even worthy of being considered a form of currency. The extreme price volatility prevents Bitcoin from becoming a widely accepted payment tool or a store of value.
“Governments do not like others creating currencies. They may allow cryptocurrency to operate for a while, but eventually, the government will create its own cryptocurrency and tighten the market to eliminate Bitcoin,” director Wilson stated.