Former US Congressman Ron Paul said that the prohibition of bitcoin is extremely unlikely, and the "self-destruction" of the dollar is inevitable.
Ron Paul: "The dollar will self-destruct"
Former US Congressman Dr. Ron Paul recently attended the cryptocurrency consensus conference in New York as a guest of the Digital Asset Policy Network (DAPNet). During the visit, the retired politician, the godfather of the modern right-wing libertarian movement, talked about the demise of the dollar and the development of bitcoin as a transformative and sovereign asset.
In an interview with Bitcoin magazine, Dr. Paul said that he did not care about technology, but was fascinated by Bitcoin and its market behavior and dramatic price fluctuations. He added that Bitcoin offers another option for the current financial system and he strongly advocates the development of a free market.
Prohibition of Bitcoin’s proposal is simply impossible
Earlier this month, Congressman Brad Sherman called for a total ban on Bitcoin.
“I found a few like-minded colleagues who wanted to introduce a bill that would completely ban Americans from buying cryptocurrencies. Part of the reason for this is that the US’s international influence is largely because the dollar is an international financial and transaction measure. Standard unit…"
When Ron Paul was asked this question, he simply replied that Sherman had no influence because he was at the top of the right, and it was almost impossible to rashly ban Bitcoin.
He added that, in general, Congress has low interest in Bitcoin, and they have not really thought about it. When asked about the idea that Sherman’s cryptocurrency would seriously affect the dollar, Dr. Paul replied:
“This illustrates a lot of problems. He represents deep government agencies, military personnel, and others in the banking system. He represents their position, 'Do not interfere with the US dollar.' But I am not worried about this because The dollar will be 'self-destructive'."
Ron Paul called the dollar a time bomb in the 2009 book "End the FED," so when asked if the cryptocurrency could be considered a hedging tool during periods of market turmoil, he replied. Citizens should be allowed to own hedge funds. Over the years, according to the Gold Reserve Act, Americans are not allowed to hold gold.
As foreign policy becomes more volatile, another large-scale financial crisis similar to the 2008 financial crisis is likely to come.
"Trust to the dollar makes the bubble bigger. Because this trust lasts too long, it only makes the crisis worse," he added.
When asked about the volatility and depreciation of the dollar, Ron Paul replied that the dollar is also volatile. "How many people really want to use it, and the speed with which the US government prints money is too fast, will cause these problems."
Since the cancellation of the gold standard in 1971, the purchasing power of the dollar has fallen sharply. The reason for the fluctuation of Bitcoin is that it is a new form of currency, there will be ups and downs, and prohibiting it is not the solution.
He added that cryptocurrencies need to be regulated, but who is going to supervise it? Since the Great Depression, the US financial system has been regulated, but this has not stopped the massive collapse 10 years ago.
Finally, Ron Paul added that people seem to have confidence in Bitcoin, but the number of buyers is also important. Is it a few million people or just a few whales? When asked if he owns any BTC, he said that he did not, but the Ron Paul Foundation will accept bitcoin.