David Marcus not Convinces US Senate of Libra’s Safety. Bitcoin Drops to $9600
Bitcoin price has fallen since David Marcus failed to prove the safety of the Facebook’s payment system.
The price of the first cryptocurrency has sharply dropped after the start of hearing concerning the digital currency Libra. Bitcoin dropped lower than $10,000 in a very short time, and even up to $9,600 after a while. Some of cryptoexchanges saw the deeper descent up to $9,500.
Before the event, Bitcoin cost around $10,700.
Earlier, the experts assumed the hearing to influence the short-term movement of the price, and it looks like they were right.
The reason why the Libra situation can be linked with Bitcoin is quite simple: it is all about the stance of the US legislators and regulators towards the new class of assets – the place, where Facebook is trying to step in.
Even though the main arguments Mr. Marcus was going to present before the authority had been posted, his answers were not always convincing.
Sometimes it looked like the head of the Facebook’s blockchain affiliate felt uncomfortable in the situation, as evidenced by the timid pauses he made to mull the answers over.
In particular, he didn’t manage to answer the question about the way Facebook is going to handle the personal data leakage issues that took place before. He also didn’t comment on the controversial policy of the social network, as a result of which the interference of Russia, senators claimed, took place in the Presidential election of 2016.