It is the fact that no one has centralized control over Bitcoin that makes it stand out in comparison to fiat currencies that are tightly controlled, said US Congressman Tom Emmer on “Pomp Podcast.”
Born in the aftermath of the 2008 financial crisis, the situation isn’t much different from the ongoing distressed economic scenario which is spurred by the coronavirus pandemic, noted Emmer. He pointed out how now people are back to looking for new safe haven assets amidst the unprecedented money printing by the US government.
According to him, the world’s leading cryptocurrency is here to stay. “As we come out of the crisis, Bitcoin ain’t going away. It’s gonna get stronger,” Emmer said.
Bitcoin along with the underlying technology will see further advancements and “continue to become more and more important.”
“You just watch, it has value, when something has value, people are going to take risks and it’s going to advance,” he said.
He also touched upon the OCC’s announcement from last week allowing national banks to hold bitcoin and cryptos for their clients — a big move for the cryptocurrency industry as banks have been reluctant in providing their services to businesses dealing with cryptos.
“Now [Acting Comptroller of the Currency] Brian Brooks is saying ‘Hey, institutions, you can start banking this stuff. You can provide a home for it, you can start working with it,’” Emmer told the host Anthony Pompliano, co-founder of Morgan Creek Digital.
We’re moving into the next phase
The Congressman is known for his bitcoin support, just last month when the major accounts of Twitter were hacked to promote a bitcoin scam, he defended the digital asset stating, “Bitcoin isn’t the problem. Centralized control is.”
Emmer further explained that bitcoin wasn’t one that screwed up rather Twitter was the one whose security “wasn’t adequate.”
Elaborating on centralization being the real culprit, he pointed out how during the coronavirus pandemic, the Chinese government in control of fiat currency “shut everybody down,” which means you can’t go out of Wuhan, the city where the virus originated, or even go out to buy groceries.
In a centralized system, someone is always in charge of the allocation of money which is “never” a good thing, said Emmer citing “The Road to Serfdom,” a book by economist Friedrich Hayek.
And that’s where the crypto comes.
“I think we’re just moving into that next phase, which is why crypto, the area, excites me,” Emmer said.
According to him, the government will have a role in this next phase but not a big one as “people can police themselves.” “I don’t like the fact that my colleagues think everybody is so dumb they’re all gonna get fleeced all the time. You know, the greatest game is through the greatest risk,” he said.