Brad Sherman, a congressman from California, has criticized Bitcoin (BTC) once more, saying that the leading cryptocurrency has “no societal value,” noting its lack of intrinsic value and capacity to facilitate crime.
On September 10, Sherman denied that Bitcoin could replace the dollar as the world’s reserve currency. He claimed that the only reason it outperforms the dollar is that it may be used to commit crimes like tax fraud. Additionally, he asserted that Bitcoin lacks the support necessary to boost the economy.
“Suppose it becomes a currency. In that case, it will only be because it can outcompete the dollar for some pretty big markets, especially the tax evasion market, and that’s why it has no societal value. We want people to invest in assets that will build the American economy,” he said.
Strangely, Sherman, who has advocated for prohibiting Bitcoin, acknowledged that it is now nearly impossible to do so but added that rules would allow the government to recover “some control.”
“The critical thing is to impose the know your customer and anti-money laundering laws on crypto. Once it’s clear that those laws are set, crypto loses the one thing it aspires to be, and that is successfully competing with the dollar by having an advantage over the dollar,” he added.
The legislator claims that if Bitcoin is successfully regulated, some of its appeals may wane as a result of the rules’ exposure of the asset’s inferiority to the dollar. Sherman is one of several American senators who have advocated outspokenly for the outlawing of Bitcoin because there is “too much power and money” behind cryptocurrencies.
Sherman thinks the government can’t now outlaw the asset because of this capability:
“I don’t think we’re going to get [to a ban] anytime soon. Money for lobbying and money for campaign contributions works, or people wouldn’t do it; and that’s why we haven’t banned crypto. We didn’t ban it at the beginning because we didn’t realize it was important, and we didn’t ban it now because there’s too much money and power behind it,” he said.
Sherman has in the past linked Bitcoin to a Ponzi scheme, pointing out that investors only buy the asset to sell it for more money.
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