Ron Paul a US retired MP who has been skeptical about Bitcoin recently called for tax exemption for all crypto assets saying the move could prevent a recession.
Ron Paul is the father of the current US Senator Rand Paul. He is a well-known American advocate of liberalism and politics. He is in an article called "Trump is correct the Fed is crazy." The suggestion was made in a blog post in which he criticized the Fed for manipulating interest rates.
Paul wrote "The next recession triggered by the Fed is likely to come earlier not later which could be a major disaster leading to the end of the legal currency."
Paul said that the only way to avoid such a crisis is to allow people to use alternative currencies and to exempt "all capital and other taxes on precious metals and cryptocurrencies."
Paul said that the Fed continues to increase and decrease the money supply control the economy by controlling interest rates and create an illusion of prosperity. The Fed’s cyclical manipulation of interest rates actually created an artificial economic boom that exacerbated the recession.
“This may create an illusion of prosperity” he wrote. In the end reality will penetrate the fantasy created by the Fed. When this happens there is a recession. Worse the situation is that the Fed is once again starting the entire cycle of ups and downs.
Ron Paul has always opposed the government's intervention in the free market which is what many people in the encryption community agree with. They prefer encrypted decentralized and unregulated markets.
Paul often criticizes President Donald Trump but he agrees with Trump's recent criticism of the Fed. Paul even called for the abolition of the Fed. He said that a limited government and an unmanipulated economy are more beneficial to society. "We should not only audit the Fed we should also get rid of it!"" he said.
According to reports in December 2017 Ron Paul was also a skeptic of Bitcoin and a staunch supporter of the gold standard. At the time Paul’s informal poll on Twitter showed that more than half of his Twitter fans would rather invest in bitcoin than invest in gold and he was surprised.
Paul said at the time that Bitcoin is very exciting and it is booming but Bitcoin investors don't have a long-term vision. What will it look like in 10 years? No one knows. But in general we have a good understanding of the past and future of gold.
Paul later changed his view of cryptocurrencies saying that he now believes that Bitcoin and gold-backed currencies can coexist in a free society.
Ron Paul's son Senator Rand Paul accepted a bitcoin donation when he was running for president in 2016. He lost in the election but became the first US presidential candidate to accept the Bitcoin-funded campaign.