To investors, Bitcoin critiques have been proposing the idea of a government ban for the digital currency over the last decade. Their argument is that bitcoin threatens the US dollar or other fiat currencies, so governments around the world will intervene to stop the adoption of the asset.
In Elon's words: "The government is simply the biggest corporation, with a monopoly on violence and where you have no recourse." Glad they're keeping us safe by taking our rights and scapegoating people, what could possibly go wrong?
Really enjoy following your stuff. Keep up the awesome insights. The issue with the analogy to banning of gold was that gold was used as the collateral backing fed reserve notes at the time and the US was meant to have 40% gold for every dollar of note issued. By the the time of FDR's act, there were too many dollars and too few gold backing it, hence the act to try to devalue the dollar. Bitcoin isn't backing anything at the government, so I cannot completely get behind your argument. The only way I see for the US to do what you are saying is that if we say gold and bitcoin are similar, then the government would have to issue CBDCs backed by bitcoin, which I don't see happening of the spiraling effect that would drive up the value of CBDCs relative to other currencies making it too expensive.
The other point about people's faith in the government eroding is a little bit far reaching. Yes, trust is definitely not where it was, but that has been on the decline since JFK and LBJ for a variety of reasons. People want protection and security from the government without it encroaching on their lives, i.e., all people want their cake and to eat it too to a certain extent. One of the major problems that has caused the government to get so large and inefficient is the lack of technology. Implement innovation that can reduce the size of government while making it more effective and you can create accountability and therefore trust.
In Elon's words: "The government is simply the biggest corporation, with a monopoly on violence and where you have no recourse." Glad they're keeping us safe by taking our rights and scapegoating people, what could possibly go wrong?
Really enjoy following your stuff. Keep up the awesome insights. The issue with the analogy to banning of gold was that gold was used as the collateral backing fed reserve notes at the time and the US was meant to have 40% gold for every dollar of note issued. By the the time of FDR's act, there were too many dollars and too few gold backing it, hence the act to try to devalue the dollar. Bitcoin isn't backing anything at the government, so I cannot completely get behind your argument. The only way I see for the US to do what you are saying is that if we say gold and bitcoin are similar, then the government would have to issue CBDCs backed by bitcoin, which I don't see happening of the spiraling effect that would drive up the value of CBDCs relative to other currencies making it too expensive.
The other point about people's faith in the government eroding is a little bit far reaching. Yes, trust is definitely not where it was, but that has been on the decline since JFK and LBJ for a variety of reasons. People want protection and security from the government without it encroaching on their lives, i.e., all people want their cake and to eat it too to a certain extent. One of the major problems that has caused the government to get so large and inefficient is the lack of technology. Implement innovation that can reduce the size of government while making it more effective and you can create accountability and therefore trust.