The White House criticizes Bitcoin because it has no fundamental value and praises CBDCs

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Von Krypto News Österreich

Der Rat der Wirtschaftsberater hat die angeblichen Vorteile von Bitcoin und anderen Kryptowährungen im Wirtschaftsbericht des Präsidenten, der am Dienstag veröffentlicht wurde, völlig missachtet. Der Bericht behauptete, dass Kryptowährungen keinen fundamentalen Wert haben und auch nicht „als effektive Alternativen zu Geld fungieren“. Krypto: Erwartungen VS Realität Das weiße Haus Bericht enthielt zwei spezielle Abschnitte zu digitalen Assets: einen mit dem Titel „The Perceived Appeal of Crypto Assets“ und den anderen mit dem Titel „The Reality of Crypto Assets“. Der erste Abschnitt würdigt einige der am häufigsten genannten Anwendungsfälle von Bitcoin: sein Potenzial als Inflationsschutz, seine Fähigkeit, schnelle digitale Zahlungen zu …
The Council of Economic Advisors completely disregarded the alleged advantages of Bitcoin and other cryptocurrencies in the president published on Tuesday. The report claimed that cryptocurrencies have no fundamental value and did not "act as effective alternatives to money". Krypto: Expectations of Reality The White House Report contained two special sections of digital assets: one with the title "The Perceived Appeal of Crypto Assets" and the others with the title "The Reality of Crypto Assets". The first section recognizes some of Bitcoin's most frequently mentioned applications: its potential as inflation protection, its ability to make quick digital payments ... (Symbolbild/KNAT)

The advice of the business advisor completely disregarded the alleged advantages of Bitcoin and other cryptocurrencies in the president published on Tuesday.

The report claimed that cryptocurrencies have no fundamental value and also do not "act as effective alternatives to money".

crypto: expectations vs reality

The White House Report contained two special sections on digital assets: One title "The Perceived Appeal of Crypto Assets" and the other with the title " Reality of Crypto Assets ”.

The first section recognizes some of the most commonly mentioned applications from Bitcoin: its potential as an inflation protection, its ability to enable quick digital payments, and its ability to improve financial inclusion. However, the last section denied all of these claims:

"When inflation increased in the second half of 2021 and in 2022 worldwide, prices for crypto-assets broke, which demonstrated that they were at best an ineffective inflation protection," the report said.

In fact, Bitcoin broke into the lowest annual stalls in June 2022, exactly after the BIZ announced maximum inflation figures of 9.1 % this month. However, the Federal Reserve was also hiking its target interest all year round to suppress inflation, which led to a significant decline in bonds, stocks and crypto equally.

The report also questioned Bitcoin's application as an alternative money and criticized its ability to effectively serve as value-plants, exchange means or invoice unit. This was in accordance with the criticism, which was brought up by central bankers around the world by the former Fed chairman Ben Bernanke to the Swedish central bank.

In addition, the report doubled the long-term criticism of Bitcoins proof-of-work and indicated that the power consumption from mining could endanger the stability of the Texas power grid. Last July, Texas ordered miner who divided the power grid to its limits during a heat wave to save energy.

Even the world of web3 was criticized, with the report the criticism from Ethereum and the decentralized web.

"Because of the lightness and convenience that a centralization brings, Web3 already tends to a centralized structure, but in a much more chunky way than in a conventional structure technology", says the report citing Marlinspike.

The central bank alternative

When discussing the lack of "fundamental value" from Bitcoin compared to other funds (e.g. gold), the report admitted that even sovereign currencies such as the US dollar also have no value inherent. However, she argued that state currencies would be supported by a "trustworthy institution" in the form of a central bank, which contributed to stabilizing the currency.

In fact, the document indicates that a central bank digital currency (CBDC) supported by the Fed could help "to lead the US financial infrastructure into the digital age ... without the risks or irrational exaggeration that goes hand in hand with crypto assets".

The report is a continuation of the Digital Asset Executive Order of President Biden 12 months ago, in which the President proves various authorities to examine the ecosystem of the digital assets-including the potential of a US CBDC.

The White House found that a CBDC, if it is implemented, would probably not use a distributed Ledger technology, but would instead "rely on a trustworthy central authority-the central bank of a country-to operate important aspects of the CBDC system".

Numerous politicians (especially from the political right) spoke out against a US CBDC, including the governor of Florida Ron Desantis Tom Emmer based on its potential use for financial monitoring.

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