As cryptocurrencies like Bitcoin (BTC) continue to gain popularity, some advocates suggest they could offer an escape route for the public from the dangers of financial bubbles. Among these advocates is Robert Kennedy, a US presidential candidate, who argued that Bitcoin and other cryptocurrencies operate on a decentralized network less vulnerable to market volatility and government policies.
Bitcoin As An Escape Route For Financial Bubbles
The world of finance is rapidly evolving with the advent of cryptocurrencies, and the US government, in its errant approach to the crypto industry, will launch FedNow. A real-time payment system supported by a version of a central bank digital currency (CBDC).
These digital assets have faced criticism from politicians and private entities in the U.S. Many argue that CBDCs will allow the government to abuse its power and potentially violate citizens’ privacy.
It is not merely “ideal” that major changes in policy receive specific authorization from Congress; it is constitutionally required.
Unaccountable institutions cannot impose a CBDC on Americans. They will tell us that CBDC won’t be abused but we are wise enough to know better.… https://t.co/OqJ27Lym2L
— Ron DeSantis (@GovRonDeSantis) April 10, 2023
In this context, Robert Kennedy Jr. advocates using cryptocurrencies like Bitcoin as an alternative to the traditional financial system. Kennedy suggests that cryptocurrencies offer an escape route for the public when the current “financial bubble” inevitably bursts.
Furthermore, Kennedy outlined his concerns about the Federal Reserve’s (Fed) monetary policies and its relationship with big banks. Kennedy claims that the Fed’s alleged “collusion” with big banks has led to the printing of $10 trillion in wealth over the past 15 years, which has primarily benefited the so-called “Banksters” at the expense of the public.
Robert Kennedy’s argument is based on Bitcoin’s potential to provide an escape route for the public from the dangers of financial bubbles. This argument is also based on the idea that cryptocurrencies like Bitcoin operate outside the traditional financial system and are not subject to the same risks and vulnerabilities.
The traditional financial system is characterized by centralized control and regulation, which can make it vulnerable to factors such as inflation, market volatility, and government policies. On the other hand, Bitcoin operates on a decentralized network, making it less susceptible to these risks.
However, while Kennedy sees Bitcoin as a potential hedge against financial instability and a way to protect wealth during economic uncertainty, the US government seems more convinced in its crackdown on the nascent industry.
The U.S. Government Wants To Destroy The Crypto Industry?
It is becoming clear that the US government’s interest in creating a CBDC raises concerns about the potential implications for civil liberties and privacy. For Kennedy, the CBDC is seen as the ultimate mechanism for social surveillance and control, with the government having unprecedented access to people’s financial transactions and personal information.
Furthermore, in the US presidential candidate’s post, he quotes crypto investor Nick Carter’s arguments that the White House has organized a coordinated effort to crack down on the nascent industry, using various government agencies to force banks to close their doors to crypto companies. In Addition, Carter describes 15 incidents where this crackdown has occurred since December 3, 2022.
While Kennedy and other advocates may see cryptocurrencies as a potential solution to the challenges of the traditional financial system, the government’s actions indicate that there are still significant regulatory and legal hurdles to overcome before cryptocurrencies can become a mainstream alternative to the traditional financial system.
Featured image from Unsplash, chart from TradingView.com