The price of Bitcoin fell below $10,000 after President Donald Trump critiqued cryptocurrency on Twitter. President Trump said he was “not a fan” of cryptocurrencies. Do we have reason to worry? Read on.
Here’s What Happened
On July 12th, President Donald Trump tweeted that he was “not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air”.
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 activity….
— Donald J. Trump (@realDonaldTrump) July 12, 2019
The cryptocurrency Bitcoin had a price of more than $13,000 on July 10th, but a few days later it fell briefly below $10,000. American news channel CNBC reports Trump’s latest rant about cryptocurrencies might be the reason why.
Despite the recent pullback, Bitcoin is still up more than 160% since the start of the year. Analysts have attributed the digital coin’s rise largely to news of Facebook getting involved in the space.
No Reason to Worry According to Experts
Experts in the crypto space say there’s no reason to worry, including Brian Armstrong, CEO of the digital currency exchange Coinbase. Armstrong responded to tweet saying it was an “Achievement unlocked” having a sitting president responding to growing cryptocurrency usages. He added:
“First they ignore you, then they laugh at you, then they fight you, then you win”.
Achievement unlocked! I dreamt about a sitting U.S. president needing to respond to growing cryptocurrency usage years ago. “First they ignore you, then they laugh at you, then they fight you, then you win”. We just made it to step 3 y’all. https://t.co/N3tzUKELaK
— Brian Armstrong (@brian_armstrong) July 12, 2019
New Cryptocurrency Libra
Libra is a new digital currency proposed by Facebook, formally announced on June 18, 2019. As of today, the currency and network does not exist yet, and the launch is planned to be in 2020. Facebook also have plans for a digital wallet called Calibra, which will be available in Messenger and WhatsApp, as well as in a standalone app.
With more than 2.7 billion people using Facebook, WhatsApp, Instagram or Messenger every month, Libra is looking at a huge potential market.
Where to Invest?
Financial advisors still agree Bitcoin is a good place to invest. The price has not yet recovered from the latest plunge, but according to experts, there is nothing to worry about. It is not unusual that the price of one Bitcoin increases or decreases dramatically overnight – in fact, this has happened several times since the cryptocurrency was first launched in 2009.
This is due to the Bitcoin-market still being small. In addition, Bitcoin is a relatively small part of the global economy. Therefore, every time a big trade occurs it has a major impact on the value of Bitcoin.
Investment is Always Risky
It’s true that investing involves risk of losing money. You can never eliminate this risk entirely, but you can significantly reduce it by investing wisely. Start investing in long term investments, like your retirement account. It’s always a good idea to have extra money for a rainy day, in case something happens and you have a lot of debt registered.
Saving money and investing are closely connected. Get into the habit of investing a little bit every month, and set up an automatic investment plan. Start with small amounts of money, and increase as you get more comfortable with the process.