Following Donald Trump’s sudden and mysterious tweets regarding bitcoin last week, Treasury Secretary Steven Mnuchin held an unexpected press conference on Monday. He used coded language telegraphing the end of bitcoin and cryptocurrency.
The Feds Want to Stop Crimes and Stabilize Markets
Steven Mnuchin was not lying when he said that the federal government wants to crack down and stop any criminal activity that uses cryptocurrencies for payment.
That’s a high priority for the federal government, especially as it relates to terrorism, the drug trade, and money laundering.
The United States also wants stable financial markets, preferably ones that go up over the long term.
Various sources put the total value of all bitcoin in the world at $41 billion. While that is a rounding error in the $84 trillion global economy, it still represents $41 billion that is not invested in more traditional and safer securities.
The speculation of bitcoin could lead to an increasing frenzy. And when that market crashes – which it will – that means a lot of people are going to lose a lot of money.
Who are those people going to complain to? The federal government. They don’t want to be the fall guy and be accused of not regulating what turned out to be a dangerous scam.
There’s another reason the federal government wants to put the kibosh on bitcoin.
The Feds Want the U.S. Dollar to Be King of Currency
Steven Mnuchin said during the press conference that the government will not permit anything to threaten the U.S.