When Congressman Brad Sherman decided
to enlist the help of his buddies to help nip crypto in the bud, he perhaps
didn’t know that he was adding more fuel to the current crypto bull run fire.
There has been a 50 percent surge since his cry to “protect the USD by banning
crypto” went out.
The Democratic Congressman from
California made the plea on May 9 while meeting the House Financial Services
Committee. Sherman said:
“An awful lot of our international power comes from the fact that the U.S. dollar is the standard unit of international finance and transactions.”
He went on to add that crypto users were out to “take that power away from us,” and even ensure that the sanctions that the U.S. loves to dole on defiant countries such as Iran would be rendered irrelevant.
Is Congress Rep. Sherman
A Bitcoin Shill?
Unless Congressman was acting as a
shill for crypto, his negative statements, have gone a long way to reveal to
the public, the importance of decentralized currencies. Anthony Pompliano of
Morgan Creek Digital says that Sherman was right to inform the public about the
looming effects of crypto on fiat. In addition, Sherman rightfully noted that
it any law to regulate crypto was “nearly impossible to enforce.”
Pomp said that it seemed that the
congressional representative knew enough about crypto to be scared of it.
Non-sovereign currencies have no appeal to a politician because they will lose
their grip on their weapon of control.
He went on to investigate some of
Sherman’s financial donors and noted in a blog
post that Allied Wallet, was a
significant donor to the congressional representative. The company is a
significant e-commerce and credit card payment processor. It is apparent,
therefore, that if Bitcoin were to achieve mass adoption, then his donors would
be on the losing end.
The very disadvantages that Sherman said, crypto brings to the financial world are crypto’s actual advantages, and it was fantastic to hear a politician admit them in public. Pomp went on to say:
“This is an incredibly bullish development for Bitcoin. There are few better advertisements for the digital currency than a current politician screaming about how unfair it is that Bitcoin is better than the USD. Rather than hurting the BTC enthusiasts’ argument, Mr. Sherman is actually confirming its validity.”
Most Bitcoin fans have however seized the response of the market to Sherman’s calls for a ban as proof that bitcoin is anti-fragile. The term, coined by author Nassim N. Taleb describes things that actually benefit from oppression, thriving more when exposed to disorder, stressors, and volatility. According to the author, while resilient elements weather shocks and remain unchanged, the anti-fragile gets better from it.
Consequently, anything that has been
improved by the vicissitudes of time, including culture or evolution, is
anti-fragile and is here to stay. Likewise, over the past decade, Bitcoin too
has faced immense challenges that few established businesses can weather and has
not only survived them but has grown by the day.
Banning Cryptocurrency Mining
Coincidentally, Sherman comments coincided with China’s National Development and Reform Commission (NDRC) recommendation calling for cryptocurrency mining ban. That’s forgetting that China is a large manufacturer of crypto mining hardware; including Beijing based Bitmain worth over $12 billion.
It is also estimated that over half of all the world’s crypto mining pools are in the Asia Pacific, with China home to some of the largest of them. The NDRC wants to ban crypto mining based on wastage of resources and pollution and its lack of adherence to regulations and laws. China banned ICOs in the past.
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