As you might have seen on Twitter yesterday evening – or read in social media wrap-ups this morning – President Donald Trump gave his first decree on Bitcoin and cryptocurrency. If you haven’t seen his thread of Tweets, we’ll cut to the punchline: He’s not in favor.
Kyle Asman, partner and co-founder of BX3 Capital, a business advisory firm that helps businesses get established with fundraising and professional services – and that got its start in the blockchain/cryptocurrency sector – had the following reactions to Trump’s comments on crypto:
- Facebook entering the space is a net positive. Because of a lack of buy-in from other corporates that don’t want the associated regulatory headaches, however, I don’t think Facebook will ultimately be successful in trying to launch Libra.
- The price of Bitcoin spiked on the back of Facebook’s announcement about Libra, as well as from the CBOE’s exit from trading Bitcoin futures.
- We are going to see a drop in the price of Bitcoin as a result of Trump’s comments, and will likely see further drops through the rest of 2019 as regulators continue to beat up Facebook.
- The only way cryptocurrency is going to work in the US is if there is a coordinated lobbying campaign and clear regulation, such as the Token Taxonomy Act pending in Congress.