May the best money win? Anti-Bitcoin Countries React

opposite reaction to The “Bitcoin Law” passed by El Salvador and its increased adoption was expected. The mainstream media has been repeating news about the alleged negative environmental impact of BTC, its use in illegal activities, and others.

However, the director of the Netherlands Bureau of Economic Analysis, Peter Haskamp, ​​may be the runner-up for the award for the most anti-Bitcoin article this week. His post “Netherlands Should Ban Bitcoin” and he is critical of it BTC and the defense of fiat currencies.

Thus, he describes cryptocurrency as a bad form of money due to its “unclear origin, uncertain valuation, and shady trading practices.” He even says that cryptocurrencies are not used for regular payment transactions.

His argument is based on Gresham’s Law, which was spelled out in the 16th century, and is used to measure the properties of good and bad money. This economic law has a basic principle: bad money brings out good.

Hasekamp believes that the argument in defense of Bitcoin Error. He claims that cryptocurrency does not have any of the three functions of money: the unit of account, the means of payment, and the storage of value. At the same time, he argued, fiat currencies “score well” in these characteristics and are a good store of value. He said:

In recent decades, there has been no devaluation of the currency. Although inflation is now rising cautiously, few people think we’re going back to the numbers of the 60’s and 70’s.

The government official argues that the new form of electronic payments based on fiat currencies has improved their ease of use. His conclusion is that the current financial system is doing “well in practice”. In the future, he expects central bank digital currencies (CBDCs) to improve it further. He adds:

Thus, cryptocurrencies are not suitable as a unit of account and as a means of payment outside the criminal circle (…). Gresham’s Law has been replaced by Newton’s Law: What goes up, must go down. The final collapse of the crypto bubble is inevitable.

the other side of CurrencyBitcoin has a tool for progress

The Dutch government official has called on countries that oppose Bitcoin to take action. He claims that waiting any longer could make the “imminent” crash of cryptocurrency worse. Later, he compared cryptocurrency to drug smuggling and explained that a complete ban of cryptocurrency would be more effective.

David Rosa, l Arbitrage Developer, posted a refutation via his Twitter account. He claims that bitcoin must pass the characteristics of money in stages, first from a store of value to a unit of account. In addition, he confirms that BTC is an emerging asset. Therefore, many tried to use it to “get rich quick”.

In the end, these investors have the opportunity to learn about Bitcoin’s unique characteristics: stability, resistance to censorship, scarcity, and lack of permission. Many of these characteristics have made BTC an invaluable asset to people in developing countries, such as saviorThey have access to a global financial system and a savings account beyond the reach of central banks. Rosa said:

It is intellectually dishonest to blame #Bitcoin and crypto assets for the financial instability caused by the crash. The securities system is characterized by central banks that keep interest rates artificially low, causing misallocation of capital which in turn leads to huge corrections.

In the end, people are turning to BTC because they have stopped trusting their national governments. This is the biggest crisis right now, according to Rosa. In the world, it seems more common for central banks to serve their own outside interests than the interests of the people they claim to protect.

At the time of writing, BTC is trading at $37,041 with sideways movement on the lower time frames. The number one cryptocurrency by market capitalization needs a boost from the bulls if it is to break the $38,000 and $40,000 resistance levels.

BTC is moving sideways in the daily chart. Source: BTCUSD TradingView

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