Ron Paul, a former US Representative, spoke with CNBC Crypto Trader regarding Brad Sherman’s comments on Bitcoin and aspects regarding Bitcoin’s regulations.
Brad Sherman, in a hearing, said that Bitcoin should be banned as it posed a threat to the US Dollar and in turn to the US international financial power as the US Dollar is the standard of international finance and transactions. He said that Bitcoin needed to be “nipped in the bud”.
Ron Paul opined on Brad Sherman’s comments on Bitcoin and said:
“Maybe he’s sincere, but I’m sincere too that I don’t trust the government to do it. He’s using it as a justification for regulation, because somebody might steal.”
He further added that this move by Rep. Brad Sherman was preemptive and that the regulations surrounding Bitcoin should be in support of the same to help improve the Bitcoin ecosystem.
“The only regulation or talk of regulation should be to reduce any obstacle and people who have new technologies like cryptocurrencies and blockchain technologies should have the freedom to develop it without anybody obstructing them. There shouldn’t be any rules to say that ‘we have to take care of everybody. I’d much rather see the least amount of regulations around Bitcoin.”
In addition, Paul agreed that Bitcoin and other decentralized currencies were trying to take control from the government and give it to the free market. He said that it was what the free market was being developed for.
A Twitter user @mdpienaar, commented:
“The Dollar won’t crash. It will be purposefully depreciated to make USA production more competitive, instead of using tariffs on imports. Free market floating exchange rates have more staying power than charging tariffs on imports, according to mainstream theory. Just a guess.”
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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