Cryptocurrnecy, Bitcoin in particular, has taken a beating in the media. There is a lot of fear around it especially in the area of media.
The other day it came out that the G20 did not see cryptocurrency as a threat.
Now, the U.S Congress issued the March Joint Economic Committee Report. In it, they note how important cryptocurrency and blockchain are, citing the security over existing systems.
Blockchain
In response to the Report’s study of cybersecurity, Chapter 9 discusses blockchain technology at some length and shows that the technology may develop to help secure transactions and information transmissions. The technology has many possible applications in addition to managing digital currencies, for which it is most widely known. Blockchain technology has the potential to help the economy function more efficiently and securely.However, the new technology and the possibilities it creates—including structural changes to and extensions of markets—resent regulatory and legislative challenges for the Federal Government, including disparate treatment by the States. It is important to proceed with prudence and provide proper guidance to the market, as discussed in Chapter 4 on regulation, and not prejudge and hinder technological developments. The new technology also may be attractive for Government to use, improving efficiency in its own operations.
(bold is mine)
So much for the U.S Government taking the attack to blockchain. Of course, we heard the same thing from the banksters who claim they love blockchain. My guess is that they are thinking more in line with a shared database, something the Government can control. The fact that think that it is worthy looking into is a big step.
Of course, blockchain is not cryptocurrency and that is what the biggest fear is of most people. Will the Government ban cryptocurrencies. Once again, we see an endorsement although the challenge is the report focused upon Bitcoin.
As a currency, the report cites the fact of high fees and volatility as blocks to it being a unit of exchange. The first part is a bit perplexing since Bitcoin fees have dropped significantly and is not much of an issue anymore. There are cryptocurrencies such as STEEM which offer no fees. Also, the second point is accurate although with greater adoption, i.e. more involved in the asset, the volatility should lessen.
Pg. 209-211 of the report.
Another interesting point mentioned is the "danger" section. One of the aspects cited is the threat of centralized exchanges. The fact that they are vulnerable to hacks, citing Mt Gox as an example, is worrisome. Did the U.S. Congress just endorse decentralized exchanges?
Pg 215
The entire cryptocurrency section is Chapter 9 starting on page 201.
https://www.congress.gov/115/crpt/hrpt596/CRPT-115hrpt596.pdf
This situation shows how the media operates. The date on this report is March 13, 2018. Did anyone see this talked about on CNBC or written up in Bloomberg? I certainly missed those stories if they took place.
The fact is cryptocurrency is starting to penetrate the psyche of many people. This will cause an expansion over time. For those who believe this is going away, it simply is not. Each day, people in this industry just need to keep pushing forward. There will be failed efforts which is needed. This is how we are going to learn. However, the successes will far outweigh the setbacks.
FUD is never to be believed and this report shows it specifically for cryptocurrency and blockchain.
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