Some proponents of cryptocurrencies like Bitcoin (BTC) assert that as they continue to gain acceptance, they may provide a way for the general public to avoid the risks of financial bubbles. Robert Kennedy, a contender for the U.S. presidency, is one of these proponents. He claimed that cryptocurrencies are less susceptible to market fluctuations and governmental regulations because they function on a decentralized network.
Can Bitcoin Serve As A Refuge From Economic Bubbles?
With the advent of cryptocurrencies, the world of finance is swiftly evolving, and the U.S. government, in its straying approach to the crypto industry, will launch FedNow. This payment system functions in real-time and is sustained by a form of a digital currency issued by a central bank, known as CBDC.
U.S. politicians and private organizations have criticized these digital assets. Many argue that CBDCs will permit the government to abuse its authority and potentially invade citizens’ privacy.
Robert Kennedy Jr. advocates the use of cryptocurrencies such as Bitcoin as an alternative to the traditional financial system. Kennedy suggests that cryptocurrencies provide the public with an escape route when the current “financial bubble” collapses.
In addition, Kennedy expressed his concerns regarding the Federal Reserve’s (Fed) monetary policies and the Fed’s relationship with large institutions. According to Kennedy, the Federal Reserve’s supposed collusion with big banks has resulted in printing $10 trillion in wealth over the last 15 years, largely favoring the “Banksters” at the expense of the public.
Robert Kennedy believes that Bitcoin has the potential to serve as a means of escaping the risks associated with financial bubbles. This argument is also predicated on the notion that cryptocurrencies such as Bitcoin operate outside of the traditional financial system and are, therefore, not subject to the same risks and vulnerabilities.
Traditional financial systems are characterized by centralized control and regulation, which can make them susceptible to inflation, market volatility, and government policies. Bitcoin, however, operates on a decentralized network, making it less vulnerable to these risks.
Although Kennedy viewed Bitcoin as a way to guard against financial instability and preserve wealth in uncertain economic conditions, the US government seems focused on regulating the nascent sector.
The U.S. Government’s Stance On The Crypto Industry: Regulation vs. Destruction?
It is becoming evident that the U.S. government’s interest in establishing a CBDC raises concerns regarding civil liberties and privacy implications. Kennedy views the CBDC as the pinnacle of social surveillance and control, with unprecedented government access to individuals’ financial transactions and confidential information.
Moreover, in his post, the U.S. presidential candidate cites crypto investor Nick Carter’s claims that the White House has organized a coordinated effort to clamp down on the new sector, using various government agencies to compel banks to close their doors to crypto companies. In addition, Carter details fifteen instances in which this enforcement has occurred since December 3, 2022.
Kennedy and other proponents may view cryptocurrencies as a possible answer to the problems with the current financial system. However, the government’s actions show that there are still a lot of regulatory and legal obstacles to be cleared before cryptocurrencies can be widely accepted as a viable alternative to the current financial system.