Crypto currency, aka cryptocurrency, has become one of the non-cash transactions that is currently developing in the world.
Many transactions, including buying and selling in cyberspace, can use crypto assets, such as Bitcoin. One can even take out loans against their crypto assets. Although this may not work on other transactions such as car accident loans (presettlement funding).
Despite the growing popularity and acceptance of cryptocurrency, there are still quite a lot of countries that are gray about this to the point of banning the use of crypto.
Only One Real Currency?
US President Donald Trump has criticized the circulation of cryptocurrencies. In a series of tweets, Trump said he was not a fan of bitcoin et al. In fact, he called them not money.
“I am not a fan of Bitcoin and other cryptocurrencies, where they are not money, and the value is very volatile because it is based on the intangible,” Trump wrote.
Trump said cryptocurrency assets that are not regulated properly will only produce bad things, such as drug trafficking and other illegal activities. Not only that, but Trump also touched on the new cryptocurrency launched by Facebook, Libra. According to him, Facebook must comply with US banking regulations such as other national or international banks. He said Facebook must have official Charter Bank licensing documents if it issued Libra.
Trump rails against Facebook’s planned cryptocurrency
Chairman of the American central bank, The Fed, Jerome Powell; Minister of Finance, Bruno Le Maire; and Bank of England Governor Mark Carney is a series of officials who do not like the presence of Libra.
“We only have one real currency in the US, and it is stronger than ever, strong and reliable. So far, the currency is the most dominant in the whole world and will remain that way. The currency is the American dollar,” chirped Trump.
There is truth about the fluctuating price of Bitcoin, Trump has a point. If you remember, the price of bitcoin has continued to decline in 2018. At the end of November 2018, the bitcoin exchange rate touched its lowest point at 4,833.09 US dollars. The price of bitcoin went up in 2019. In fact, at the launch of Libra at the end of June, a single bitcoin bit broke through more than 10,000 US dollars.
The Blockchain System In Terms of Reliability
All data is always alive and disseminated to all participants in the blockchain system, thus increasing data reliability because it does not depend on just one provider that requires secondary investment costs such as a DRC (Disaster Recovery Center) system to support operating reliability. If a node belonging to a bank fails, there is nothing to worry about. He will receive the latest data when alive and reunited.
The unit of information received and sent can be considered as a new ‘currency’ whose value is agreed upon by each bank, and this is a new treasury business opportunity for each participating bank and relinquishes bank dependency from one of the most dominant currencies at once able to hedge the original currency used.