Major cryptocurrencies have collapsed on Tuesday, as Bitcoin has fallen significantly below $ 33,000. The most famous cryptocurrency in the world has been going down for most of the last 5 days, taking its breath away only on Sunday, reports the BBC.
The day before, the former president of the United States Donald Trump said bitcoin looks “like a scam“, calling for stricter laws, regulating crypto markets.
Bitcoin sank 4.02% at 3:06 a.m., selling for $ 32,211. Meanwhile, Ether fell 5.56% at the same time, reaching $ 2,448.29.
Bitcoin collapsed after a statement from Musk that Tesla would not accept them for payment
Because of the impact of cryptocurrency on the environment
–
“Bitcoin, this just looks like a scam. I don’t like it because it’s another currency that competes with the dollar“, Trump explained to Fox Business.
He added that he wanted to the dollar to be the “currency of the worldHis comments come after reports that El Salvador plans to make the cryptocurrency a legal tender.
From May until now Bitcoin’s decline is widely attributed to China’s ban on banks and paying companies providing services, related to cryptocurrency transactions, as well as electric car maker Tesla, which announced it would no longer accept the currency a week earlier.
Justin Urquhart-Stewart, co – founder of Seven Investment Management believes that bitcoin is a potential threat of currency destabilization, “because it was launched in such a way that it created a popular attraction without any stable financial force.”
He blames the rise of bitcoin with the actions of people like Elon Musk, “who are behaving stupidly“Bitcoin is dangerous because it is trying to build a level of trust in unreliable and completely unfounded value,” he told the BBC.
He added that there is a growing trend with young people taking huge risks because they are not properly trained in finance and firmly believes that a national curriculum should include education on how to develop family finances.
“What we have now is a young generation of players who have no knowledge of financial planning and development. They understand how to buy and sell things, but they have no idea how to create long-term wealth. “
–
Putin: US actions harm the dollar as the world’s reserve currency
The United States does not value its currency, stability, predictability and reliability are important, not what the currency is, there are others
–
Unlike him Neil Wilson, chief market analyst for Markets.com believes bitcoin is definitely not a currency.
He commented that to qualify as a currency, it must have the following features: to be a unit of account; to provide a good stock of value; to be a means of payment.
“I call bitcoin more like a security, like a stock or a bond“says Wilson.” Although it is widely evaluated, it is too volatile to be a currency – moves more than most stocks. “
People who mostly buy Bitcoin do it to keep it and invest instead of spending it.
As for Trump’s claim that the cryptocurrency threatens the US dollar, he disagrees, but may pose a slight threat to gold.
“The means by which America influences the world is mostly in dollars, and they will not give it upso I don’t see bitcoin as a threat at all, “he says.
“Governments don’t like others who make money – they seem to have tolerated cryptocurrencies for some time, but will eventually establish their own digital currencies and push out bitcoin. “
