{"id":1365,"date":"2022-04-14T20:08:02","date_gmt":"2022-04-14T20:08:02","guid":{"rendered":"https:\/\/prendergast.net\/?p=1365"},"modified":"2022-04-14T20:08:02","modified_gmt":"2022-04-14T20:08:02","slug":"why-the-government-wont-ban-bitcoin","status":"publish","type":"post","link":"https:\/\/prendergast.net\/?p=1365","title":{"rendered":"Why The Government Won’t Ban Bitcoin"},"content":{"rendered":"
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Why The Government Won’t Ban Bitcoin<\/span><\/strong><\/span><\/span><\/h1>\n

by<\/span><\/span><\/span> Tika Tiwari, <\/span><\/span><\/span><\/strong>editor<\/span><\/span><\/span>, Palm Beach Daily<\/span><\/span><\/span><\/strong><\/h2>\n

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Bitcoin Is Aligned With American Values<\/span><\/span><\/span><\/strong><\/h3>\n

Last week, while attending the Bitcoin Miami Conference, one of my high-net-worth friends invited me to a special, closed-door meeting with U.S. Representative Pete Sessions. <\/span><\/span><\/span>Sessions, who is from Texas, was also in town for the conference. <\/span><\/span><\/span>He believes bitcoin is “aligned with American values” and predicts that it’ll work to strengthen the U.S. dollar. <\/span><\/span><\/span>He also wants to make sure Congress doesn’t regulate the burgeoning crypto economy out of existence.<\/span><\/span><\/span><\/p>\n

My friend who invited me to the meeting has made a fortune in crypto. And he’s worried about government overregulation of digital assets. <\/span><\/span><\/span>So he put together a small, exclusive gathering of heavy hitters from Wall Street and the blockchain space to speak to the congressman. <\/span><\/span><\/span>And the first person he introduced Rep. Sessions to was me.<\/span><\/span><\/span><\/p>\n

He trusts me to speak about bitcoin to a political heavyweight like Rep. Sessions because he made his crypto fortune following my newsletters. <\/span><\/span><\/span>In a moment, I’ll share my thoughts on whether the government will ban bitcoin. <\/span><\/span><\/span>But first, I want to say I’m humbled that my work for everyday Americans has put me in the position to advocate for the government on behalf of this groundbreaking technology.<\/span><\/span><\/span><\/p>\n

If it weren’t for you believing in me, I wouldn’t be where I am today. And I wouldn’t be able to push for regulations that will cultivate the crypto ecosystem, not suppress it. <\/span><\/span><\/span>I’ve never seen an asset with more power to transform the lives of everyday people than bitcoin and crypto-assets…<\/span><\/span><\/span><\/p>\n

There’s a dentist from Oklahoma City I met who turned a few thousand dollars into $2 million… and an auto parts salesman who made six figures from a single $500 investment in one of my ideas. <\/span><\/span><\/span>These are the kinds of people I fight for. People like you. Because, like Rep. Sessions, I believe bitcoin is “aligned with American values.” <\/span><\/span><\/span>Now, let me turn to my thoughts on potential regulation…<\/span><\/span><\/span><\/p>\n

The No. 1 Worry Among Bitcoin Investors<\/strong><\/span><\/span><\/span><\/h3>\n

Last month, President Biden signed an executive order calling on the government to examine the risks and benefits of cryptocurrencies. <\/span><\/span><\/span>Even now, people are still freaking out about this order. They believe it’ll lead to restrictive rules that will stifle innovation. <\/span><\/span><\/span>But I’m not worried.<\/span><\/span><\/span><\/p>\n

The order says exactly what you would want it to say… And the U.S. will not get left behind on blockchain technology. <\/span><\/span><\/span>The U.S. government is now taking a unified approach to providing regulatory guardrails the industry can use to grow in a compliant way. <\/span><\/span><\/span>The decision to pursue a unified regulatory framework will be the foundational launching pad that will propel the entire United States into the blockchain age.<\/span><\/span><\/span><\/p>\n

Why the sudden change of heart by the government?<\/span><\/span><\/span><\/strong><\/h3>\n

I believe it all comes down to something I’ve been saying for years: Never bet against Wall Street greed. <\/span><\/span><\/span>If we’ve learned one thing about global governments, it’s that they don’t stand in the way of the big banks’ desire to make money.<\/span><\/span><\/span><\/p>\n

Take the 2007 housing crash. It was among the top five most devasting financial crises in history. <\/span><\/span><\/span>The stock market plummeted, wiping out nearly $8 trillion in value between late 2007 and 2009… <\/span><\/span><\/span>Americans lost $9.8 trillion in wealth as their home values plummeted and their retirement accounts vaporized. <\/span><\/span><\/span>But after that horrible financial crisis, did the government ban mortgage-backed securities… credit default swaps… or collateralized debt obligations (CDOs)?<\/span><\/span><\/span><\/p>\n

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No.<\/span><\/span><\/span><\/p>\n

Those financial products brought our country to its knees. Yet, the government didn’t eliminate them… (Which is shocking to me.) <\/span><\/span><\/span>So, why didn’t they get banned? <\/span><\/span><\/span>The answer is simple: Wall Street makes too much money from them. <\/span><\/span><\/span>And with every big bank now offering bitcoin to their “high-net-worth” clients… they now want to make sure they have the regulation in place to roll out crypto products to the rest of their millions of “ordinary” clients.<\/span><\/span><\/span><\/p>\n

To be clear: I’m not comparing bitcoin to mortgage-backed securities or CDOs. <\/span><\/span><\/span>Unlike those risky financial products – which relied on trusting that your counterparty was delivering what they said they would deliver and would have the funds to pay you – bitcoin is completely different.<\/span><\/span><\/span><\/p>\n