During the recent financial services committee hearing at the U.S Congress, a Congressman named Brad Sherman suggested a ban regarding the buying and mining of cryptocurrencies by US citizens. He also strongly believes that cryptocurrencies take resources away from various other required areas and are used to facilitate criminal activities.
Brad Sherman stated:
“Cryptocurrencies offer unparalleled advantages to the nations that the U.S Government sanctioned for their terrorist activities, tax evaders and to criminals.”
Congressman Sherman’s argument mostly revolves around the fact that the current dollar and digital currency are efficient and effective in all forms of transactions and that Bitcoin and other cryptocurrencies only act as a means for promoting tax evaders and narco-terrorism.
Norbert Michel of the financial market regulation has pushed back this argument stipulating that if Bitcoin and other cryptocurrencies are criminalized based on the fact that Bitcoin was used by terrorists, then airplanes, computers and automobiles then it should also be treated the same since they were also used for terrorism and illegal activities.
Despite the counter-argument put forth by Alex J. Pollock, another U.S Congressman stated that cryptocurrency is just another alternative that can be used in transactions, it is not trying to replace the dollar or undervalue any other form of digital currencies.
Brad Sherman went up to a point where he accused Bitcoin mining of taking away electricity from other basic and important needs and contributing to the carbon footprint. He stands firm in believing that cryptocurrencies accomplish nothing except facilitating narcotics trafficking, terrorism and tax evasion.
He finally remarked:
“When we have people take risk we don’t encourage gambling we encourage investment in the real economy. But, when you buy a Bitcoin, are you financing a new factory? No. You’re gambling on its value for no social benefit.”
A cryptocurrency enthusiast on Twitter says:
“If we use that same principle, US dollars have been widely used for money laundering and for any type of crimes. Are they going to forbid US dollars?”
Mike, a Twitter user commented:
“Unlike the fiat U.S. dollar, cryptocurrencies like #bitcoin and #Litecoin are bound by mathematical constraints. Mathematics has never been a concern of the majority of those in the U.S. Congress. The inability to simply balance a budget is proof of that fact.”
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