Bitcoin(BTC) price dropped below US$10,000, just three weeks after recovering from this line in more than a year.

This decline happened in few days after US legislators expressed deep skepticism about the viability of cryptocurrencies. It came under fire during a US senate banking committee hearing about Facebook's plan to create its digital token, Libra.

The US Government and other central banks are unhappy with this whole idea about Libra and want to stop it and eventually all cryptocurrencies including bitcoin.

The official reasons for this regulation are well known as they stated at the Facebook hearing, from national security concerns and investor protection to liquidity.

The Chairman of Concordium, Lars Seier Christensen, says, "Libra is supposedly going to be backed by 'safe' assets such as money market instruments, fiat currencies, and short-term government bonds. And if Libra is very successful, this will lead to a massive pool of tools and create liquidity problems. For example, in the case of a run on the Libra currency, which happened to much smaller money market funds during the financial crisis, so it could quickly occur here."

However, they also know that even big governments and central banks cannot stop or tolerate Libra and Bitcoin. Panos Mourdoukoutas, a professor and Chair of the Department of Emonomics at LIU Post is New York, states it is because "they threaten to break their monopoly on printinig money and to manipulate the economy to accommodate the interests of powerful elites."

A Director and Co-founder of NEM Ventures, Dave Hodgson also states "Government and central banks are after Libra and Bitcoin because they reduce their ability to control markets and populations, while also making some of what they do irrelevant."

Iain Wilson, an Advisor at NEM Ventures, agrees to Hodgson and says "Public blockchains are inherently decentralized which empowers individuals and enables radically different business models and this has major ramifications for the ultimate centralized entities - big government, big corporates and the guardians of the banking sector: Central Banks. Balancing power between these two poles will require major public policy debate and potential clashes. This is what we are starting to see."

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