Ron Paul: Bitcoin or dollar substitute

Today, nine years ago, a Florida programmer named Laszlo Hanyecz bought two Papa John's pizzas for 10,000 bitcoins (then worth $41). If calculated according to the current price, 10,000 bitcoins are worth about $79,219,900.

Although this price is a bit big, it is the first deal of Bitcoin in the real world. In the process of Utopia experiment to the real world, Bitcoin as a revolution in subverting the monetary system began to be recognized and used.

On November 16, 2018, Ron Paul, a former US congressman who was skeptical about Bitcoin, made a survey by a tweet. If a rich man gives you $10,000, you can choose to use any Form accept this gift. But the premise is that in the next ten years, you must hold the gift in the form you choose, and you can't touch it. So which one of the US dollar, gold, bitcoin or 10-year US Treasury would you accept this gift?

In more than 90,000 votes, 50% chose Bitcoin. Obviously, the recognition and consensus of Bitcoin in the world is rising.

In fact, the liberal politician has long hinted that tax-free digital assets will help avoid the "recession of the Fed's economic recession." In a recent interview, Ron Paul further elaborated how the Federal Reserve Board (Fed) created a dollar bubble on the verge of collapse and how Bitcoin became a suitable alternative.

The dollar will self-destruct

Ron Paul said that the Fed is plunging the United States into disaster at a faster and faster rate, and the dollar is in a "bubble" state. At the same time, the outspoken politician predicts that the impending financial crisis will dwarf the 2008 Great Recession.

In addition, he said that the "central bank" is not something that has existed since the birth of human civilization, but what the government exists, and they always try to gain control, because this is the real power. But in the long run, such a system is obviously unsustainable. For the future of society, we need to use a way to replace the central bank, because this monopoly is not good for anyone.


Bitcoin is a substitute

So what can replace the dollar? Ron Paul believes Bitcoin can be a "substitute" to the government-backed legal currency (such as the US dollar). The reason is that the design of the dollar is inflation, as long as the Fed prints more money each time, the dollar will depreciate. Bitcoin was designed after the 2008 economic crisis. It is deflationary. The halving of production every four years will further reduce the supply of bitcoin, and the imbalance between supply and demand will further push up prices. In addition, the idea of ​​the birth of cryptocurrencies such as Bitcoin fits very well with Ron Paul and his Liberal Party's belief system, emphasizing freedom and autonomy.

For Ron Paul, the creator of the Austrian economics and the determined libertarian, his interest in Bitcoin is also natural. In his view, the bitcoin ban is extremely unlikely, and the demise of the dollar is inevitable. When the market crashes, Bitcoin offers an alternative. In fact, as early as 2013, Ron Paul said, “Bitcoin may become a substitute for the US dollar. If people start to use Bitcoin extensively, then Bitcoin will be written into history as a US dollar terminator.”

Even as Ron Paul said, governments around the world will not let cryptocurrencies “free ride” and even try to block, destroy and supervise them, but in Ron Paul’s view, people will have money. Freedom is imperative.

Author: Tony Spilotro

Source: News BTC