Since the dawn of cryptocurrency, digital assets have slowly made a name for themselves, often being spoken about as an alternative to the world’s fiat currencies. This argument holds especially true in light of the falling valuation of fiat currencies such as the Argentinian peso and the Turkish Lira, while Bitcoin itself seems to be performing very well.
Ron Paul, a former Congressman, had also made news after he criticized the existence of the US Dollar, claiming that the US Dollar was “going to self-destruct.”
Anthony Pompliano, a major Bitcoin Proponent, in a recent segment of CNBC television, joined the debate and stated that similar to Bitcoin, the US Dollar was not tied to anything. He was responding to arguments claiming that Bitcoin can’t be trusted since it wasn’t pegged to anything.
In the wake of this statement, the crypto-community remained split. Larry Cermack was one of those to put forward his argument.
Cermack suggested that the statement made by Pompliano was inaccurate because the US Dollar was backed by the U.S military, which was indirectly backed by the government. He mentioned that betting on Bitcoin was still a “risky bet” and the fact that Pompliano believes that Bitcoin and US dollar were “not tied to anything” was deemed “very silly” by Cermack.
Pompliano responded and tweeted,
The discussion was further joined by Frank Chaparro, who said that the situation of being “tied” and “backed” were completely different from each other. He clarified that the US Dollar and Bitcoin were both not tied to earnings, interest rates and profits as the US Dollar was backed by the government and Bitcoin was backed by code and movement.
Pompliano reverted back and denied any similarity portrayed between Bitcoin and USD. He suggested that according to data, both of them were non-correlated. USD was definitely tied to interest rates, GDP etc., whereas Bitcoin was non-correlated. He emphasized on the notion that this “aspect” of Bitcoin was highly misunderstood by the general community.
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