Ron Paul, a retired US congressman and former Bitcoin skeptic, has called for tax exemption on cryptocurrencies. He claims that the move could help prevent an economic recession. Ron is the father of current US Senator Rand Paul who made history in 2015 by becoming the first presidential candidate to take donations in Bitcoin.
Paul: Fed Created Recession To Come Sooner Than Later
Paul made the statement in a recent blog post titled “Trump Is Right, the Fed Is Crazy,” where he blasts the Federal Reserve for manipulating the interest rates.
It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency.”
He believes the only way to avoid such a catastrophe is to allow the citizens to use alternative currencies and to exempt “all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
He adds that central banks are continually increasing and decreasing the money supply to control the economy by controlling the interest rates.
The consequence of manipulating interest rates is that it fuels recessions since this creates an artificial economic boom.
“This can create an illusion of prosperity. Eventually, reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
Paul is a libertarian who is highly opposed to the government intervention in the free market. It’s a sentiment that is shared by the crypto community.
He has also gone to the extent of claiming that the Federal Reserve should be abolished. A belief that is based on the opinion that a limited government and an economy which is not manipulated is better for the society.
However, Paul who is a staunch advocate of the gold standard has not always been a fan of Bitcoin and cryptocurrencies. In December of 2017, he was surprised that more than half of participants in an informal Twitter poll would instead invest in Bitcoin than gold.
The question read:
“A wealthy person wants to gift you $10,000. You get to choose which form you’ll take the gift. But there’s a catch: You must keep the gift in the form that you choose, and you can’t touch it for ten years. In which form would you take the gift?”
At the time he said that bitcoin investors lacked a long-term perspective. No one had an idea what would happen to it in the next ten years, but, as for gold, everyone had an idea where it would be.
However, since then his outlook on crypto has changed, and he now believes that BTC and a gold-backed currency can co-exist in a free society.
Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.