In an otherwise dark room, there is a glimmer of light for Bitcoin and cryptocurrency enthusiast. While Japan, Singapore and other ASEAN countries are leading the way, demonstrating to the world that indeed Bitcoin is just but another disruptive technology that governments as well as private institutions can leverage for efficiency as well as cost savings, the first and second largest economies are ambiversive on blockchain applications as cryptocurrencies.
No kind words for Innovation: While testifying at the House Financial Services Committee, Jerome H. Powell, the chair of the Federal Reserve said Bitcoin as an investment poise serious risks to investors.
“Relatively unsophisticated investors see the asset go up in price, and they think, ‘This is great; I’ll buy this. There are investor and consumer protection issues as well.”
And he’s not alone, Nouriel Roubini, a NY Professor, is a vicious critic (and Crypto Influencer) of cryptocurrencies and specifically Bitcoin. He has been bashing Bitcoin since 2013 and in countless occasions, he has reiterated his stand that Bitcoin is a Ponzi scheme. Recently, he said this about blockchain ideals and Bitcoin’s overall objective:
“Decentralization in crypto is a myth. It is a system more centralized than North Korea: miners are centralized, exchanges are centralized, developers are centralized dictators (Buterin is “dictator for life” ) & the Gini inequality coefficient of bitcoin is worse than North Korea”
Counter Arguments: But if you ignore him and had bought Bitcoin every time he bashes the currency, gains would have been impressive:
“Roubini hasn’t been mocking Bitcoin since it was $600. He’s been mocking it since it was $58. Imagine how short your attention span must be, & how strong your self-delusion, to gloat with vindication during every dip from $58 to $7,000.”
His disdain for crypto was further criticized:
The Wyoming Embrace: Luckily, Wyoming is path finding and with the dedication of Caitlin Long, a 22-year Wall Street veteran and chair of Blockchain forum, the state is laying the rails for the eventual financialization of Bitcoin.
In a step that we can only interpret as the much-needed boost for legitimization of cryptocurrency, legislators lead by Senator(s) Nethercott, Driskill, Perkins and Rothfuss and Representative(s) Harshman, Lindholm, Loucks, Olsen and Wilson are proposing a bill, Digital assets-existing law, that will clarify the position of digital assets and the framework for custodial solutions via banks.
Caitlin Long breaks it down as below:
All the same critics are back saying the bill is in anti-innovation and anti-Bitcoin. Note that at the end of the day, if this bill is approved, spending BTC off personal wallets may be deemed illegal—and this is where clarity is needed.
Caitlin Long clarifies about banks offering custodial solutions saying:
Do you think this bill is retrogressive and will eventually stifle innovation? Let us know in the comment section.