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"Crypto is doomed to fail" — White House report
Daniel Akpobare
March 27, 2023
GM, this is The Crypto Explorer, we're here to satisfy your curiosity and explore the depths of the crypto universe!
Here's what we got for you today:
The economic report of the President
"Crypto Is Doomed To Fail" — White House Report
The White House's Council of Economic Advisors has published its annual report, and it's got the crypto community up in arms!
They had a whole chapter of the report dedicated to digital assets, and let's just say, it wasn't a love letter.
If you read this recent report from the White House it is very clear the voices of reason on #Bitcoin and digital assets have left the building.
We hope they come back.
— Dennis Porter (@Dennis_Porter_)
11:10 PM • Mar 21, 2023
Here’s what you need to know about it:
The report claims that the crypto industry is seeking to exist outside the grasp of the US government, therefore setting it up for failure.
It reads:
“Digital asset proponents are now aspiring to create a decentralized financial system without relying on governments and their regulatory frameworks, which were shaped by important lessons learned from multiple previous crises, including the 1907 panic”
The CEA report warns that crypto assets can harm consumers and investors and cites various disasters in the crypto sector, (including last year's collapse of Terra, Bitconnect, and FTX).
The CEA report goes on to quote prominent computer scientists and their issues with crypto as evidence that the underlying technology may not be legitimate.
The report looked at a number of claims and stated goals from the crypto industry and concludes that so far, crypto assets have brought none of these benefits.
In other words, they’re saying cryptocurrencies have no fundamental value. Ouch!
“It has been argued that crypto assets may provide other benefits, such as improving payment systems, increasing financial inclusion, and creating mechanisms for the distribution of intellectual property and financial value that bypass intermediaries that extract value from both the provider and recipient.
Looking under the hood at these arguments, however, shows a more complicated picture. So far, crypto assets have brought none of these benefits”
You can bet your bottom dollar that the crypto industry isn't happy about this report.
1/ Yesterday, the WH published its annual Economic Report of the President.
It was disappointing – a reactionary report that overlooks the myriad benefits the industry provides consumers + the US as a whole.
— Blockchain Association (@BlockchainAssn)
8:47 PM • Mar 22, 2023
Galaxy crypto analysts pointed out that:
The authors [of the CEA report] repeatedly cite crypto’s most sordid bad actors as broadly indicative of the industry as a whole.
They used BitConnect, one of the most blatant scams of the 2017 bull run (which by the way was exposed by the crypto community in real-time and only charged by the SEC 4 years after the scam had run its course in 2021).
The authors failed to note that there are thousands of prominent computer scientists that believe the technology is transformational or are even working on it.
For example, the authors fail to note that MIT, Stanford, [U.C. Berkeley], University College of London, and hundreds more prominent universities are deep into conducting significant technical research on blockchain and crypto assets, or to mention the myriad prominent cryptographers and computer scientists who advocate for and develop on blockchain technology."
It's pretty certain we're all still paying for the sins of the bad actors in this space. 🤷♂️
That's all we have for today.
We'd love to hear your feedback.
Until then, see you tomorrow, or on Twitter, if you're there: @danielakpobare
DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.
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