Let the Free Market Regulate Bitcoin – Bitcoin Magazine
This is an opinion piece by Kelly Slaughter, Associate Professor of Business, Neely School of Business, Texas Christian University.
With elections coming up next month, finding common ground between liberals and conservatives is nearly impossible. Freeing Bitcoin from government regulation.
To make this claim, compare Bitcoin to potential Central Bank Digital Currencies (CBDCs) currently being considered according to recommendations from a recent White House report. CBDC fails to offer all the benefits of Bitcoin and introduces new risks.
The appeal of Bitcoin and other cryptocurrencies is that they are not subject to central decision-making. With CBDC, governments can freeze digital accounts. As a replicating system, it cannot restrict transactions between Bitcoin holders. Inspired by the same fear that access to one’s assets is capricious, no matter which party is in power, Red and Blue must agree on the benefits of a platform without a selective “off” button. there is.
A CBDC can promote financial inclusion and equity by making it accessible to a wide range of consumers, according to a White House report. Bitcoin is great for doing this. About 5% of U.S. households are “unbanked,” meaning they do not have a savings or checking account. The top two reasons for not having a bank account are inability to meet minimum requirements and lack of trust in banks. Bitcoin has no minimum balance and does not require trust in a governing body.
In fact, the most significant adoption of Bitcoin is in poorer countries with a high proportion of unbanked households and a high level of institutional mistrust. The potential for social benefits such as direct transfers is immense. Liberals and conservatives may approach this issue from different perspectives, but both see value in providing financial infrastructure for those who do not.
Bitcoin is the most transparent financial system ever introduced, with no central authority deciding what is transparent and what is not public. Anyone can access historical and current Bitcoin data. Even the code that runs Bitcoin is open for public review, including when and what changes were made.
The opportunities to leverage this transparency are immense. What if you paid taxes to government bitcoin addresses? What if vendors were paid in Bitcoin? What if governments and vendors had to share addresses publicly? and is responsible for both the blue and red sides of the passage.
There are many legitimate criticisms directed at Bitcoin. Regarding energy use, proponents and critics agree that reducing energy use is a worthy pursuit. After that, we can see that the transition to green mining is underway.
What about cheating or illegal activity? Bitcoin advocates are keen to keep this kind of activity out of the system (to be fair, what are the criteria for an honest system? We want more Bitcoin than any other system. Do you have?). Transparency alone can prevent fraud, as seen in legal seizures of cryptocurrencies, but many Bitcoin proponents want to work with governments to introduce reasonable regulation.
Bitcoin has experienced considerable volatility and speculation. This is not the behavior we want in the currency and is a problem all Bitcoin proponents are aware of. Throughout our nation’s history, we have accepted foreign currency for public spending and allowed banks to print their own currency. The idea of what money does and how it behaves is evolving. Bitcoin is over a decade old and, if allowed, will evolve based on our technological, economic and social preferences.
Bitcoin is not a replacement for the US dollar, it is an alternative. We recognize the US dollar as the official and customary alternative currency around the world. Bartering without any currency is still legal. We recognize the many ways people trade. Both Reds and Blues recognize the value of having financial options, and Bitcoin is another option with its own advantages.
Opponents of Bitcoin argue that Bitcoin has no intrinsic value, unlike government-backed fiat currencies. But is our government nothing more than an agreement between citizens? Citizens therefore have the power to agree to recognize Bitcoin as a means of transaction. Let’s join forces with right-wing and left-wing proponents to agree that Bitcoin will continue to evolve as a voluntary choice for parties to do business.
This is a guest post by Kelly Slaughter. Opinions expressed are entirely his own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.
Let the Free Market Regulate Bitcoin – Bitcoin Magazine
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