Bitcoin (BTC) is not a threat to the U.S. dollar, according to a member of a Congressional group that was given the responsibility of looking at the possible implications to the national security of the U.S. and the country’s economic relationship with China.
Alex Wong, after asking an expert witness regarding the likelihood of the claim of Peter Thiel that Bitcoin would be a threat to America and it would benefit Beijing, specifically said that the digital currency does not effectively compete with fiat currencies because of its unstable price.
Wong is a member of the U.S.-China Economic and Security Review Commission created by Congress in October to evaluate the two countries’ relationship.
Rebuttal Further Explained
Wong elaborated that Bitcoin (BTC) is extremely volatile. He added that the features that make it attractive don’t make it a major competitor to currencies regulated by a government.
He said that when you buy a Bitcoin, you won’t know for certain that it’s going to be twice as much or 20% less the following day.
The witness in question, Yaya Fanusie of the Center for a New American Security, said that Thiel’s claims were “overblown.”
No Reason to Worry
Fanusie went on to say that Thiel was talking about the known fact that China heavily owns the computing power to mine Bitcoin (BTC).
Due to this, he inferred that the country could have the ability to hold and control the largest cryptocurrency. But Fanusie was quick to rebut this thought, saying that it is impossible due to the decentralized nature of the crypto’s network infrastructure.
Thiel, the co-founder of digital payment PayPal, has long been critical to American companies such as Facebook and Google because of their ties with China. He is also known for being a huge backer of Ethereum (ETH), the second-largest cryptocurrency in the market today.
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