The cryptocurrency markets suffered a considerable blow yesterday as the first phase of the Libra Senate Hearing concluded on 17th July. Devid Marcus, the representative of the Libra Association and Facebook, was grilled by all parties on privacy and security concerns.
Moreover, due to the limited time, most senators were unsatisfied with the response at the moment. However, David also reiterated that the announcement was made a year tentatively before the launch to address regulatory and market concerns. The Association is committed to complying with all national and international laws.
Libra announcement also had a substantial effect on the crypto-markets as Bitcoin seemed to become mainstream. Nouriel Roubini, who has actively engaged with the crypto-community in recent times due to the debate between himself and BitMEX exchange CEO, Arthur Hayes, noted about the fall,
Bitcoin down 14% in last day to below 9.5K! Ouch! It must hurt to get so rekt so fast! Calling bitcoin a currency – let alone 1000s of other shitcoins – is a joke: they are not a unit of account, they are not a means of payments (5tps) and no stable store of value (-14% in a day)
The altcoins dropped even lower as they broke below support levels. Ethereum and Litecoin are currently testing $200 and $80 respectively, with EOS and Ripple in a bearish trend below $4 and $0.3 as well.
Nevertheless, as the drop in Bitcoin was also a probability through technical analysis, the optimism in the market is still intact.
Metlem Demirors, the Chief Strategy Officer at Coinshares, expressed similar sentiments. According to her, not everything can be classified as “cryptocurrency”; like the companies or developers attempt to advertise. There are certain economic advantages and security that an open, permissionless network like Bitcoin provides. She told the media,
“We’re seeing the creation of thousands of companies, thousands of jobs; a lot of economic value being created v/s. What Libra is attempting to do. Libra is an entity that benefits Facebook and small group of participants in the Libra Association.”
Furthermore, she also suggested how Switzerland’s proactiveness in passing crypto -regulations in 2018 has made it a “haven for many cryptocurrency companies.”
Mati Greenspan, the Senior Market analyst at eToro tweeted,
One word dominated the Libra hearings today: trust
One word @ did not use: trustless
Libra requires faith in Facebook. Bitcoin is trustless.
Hence, as recent comments from the US President, Fed Chairman, and the Treasury Secretary continue to validate the cryptocurrency space. The enthusiasm that Libra brought seems to be subsiding as it is being burdened by regulatory oversight.
Do you agree that cryptocurrencies will flourish in the next decade or are apprehensive of it? Please share your views with us.