US Bitcoin Political Advantage
The United States has always been the world’s financial leader in my lifetime. But for now, government leaders are missing an opportunity to empower Americans to use digital currencies. Our incomprehensible reluctance to embrace digital currency puts our leadership at risk.
Bitcoin, in particular, is poised to become the premier currency of the 21st century. Its scarcity literally makes it “digital gold” and it has a good start for institutional adoption. Bitcoin is ready for the global economy, and it is imperative that the United States leads the world in the Bitcoin adoption revolution, or it risks losing to countries that are already embracing innovation.
While there are a myriad of benefits to embracing Bitcoin in an increasingly digital age, there are two important incentives right now. First, to echo countless leaders in the financial industry, Bitcoin presents better inflation hedges than gold and other traditional assets.
Joe Biden and Chuck Schumer have made it clear that they are determined to spend taxpayers on the brink. The Democrats who control Washington are ready to mortgage the future of our children and grandchildren to pay back political patrons. As a direct result of their irresponsible spending, we have runaway inflation, currently reaching record levels.
Bitcoin is a powerful financial tool allowing individual investors to hedge against this inflation in a way that was not available historically, and perhaps more importantly, it is less capital intensive than hedges like real estate.
A solid understanding of Bitcoin is not necessary to see how innovative the technology is and recognize its ability to democratize finance and securities. And yet, as recently as August of this year, the US Senate was spending its legislative time devising new ways to punish not only cryptocurrency brokers, but anyone who buys, sells, or trades cryptocurrency. .
The second glaring advantage of Bitcoin is its ability to cripple China in this existential race to see who will lead the global economy for the remainder of the 21st century and into the 22nd.
From a pure innovation standpoint, America is fortunate to futurize much faster than China. We know that China will do everything possible to reverse the adoption of Bitcoin because it is decentralized and democratized, principles that go against the Chinese Communist Party. For the simple reason that we would gain a competitive advantage over China, digital currency makes sense.
But from an even more technical point of view, in the long term, if the dollar remains weak, it risks losing its status as the number one reserve currency in the world. If we don’t make Bitcoin a legitimate alternative, we risk letting China become the banks’ preferred reserve currency. The national and global implications of such a decision are serious, to say the least.
From both an individual and institutional perspective, there are immediate benefits to incorporating Bitcoin. Our government’s reluctance to accept digital currencies is, in a nutshell, unreasonable. The Land of Innovation is actively turning its back on the biggest innovation in the financial sector in many lifetimes. And we will continue to do so at our peril.
This is a guest article by Jeff Bartos. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.