Several people have poured their criticism on the call for the Netherlands government to ban Bitcoin and cryptocurrencies, as opinionated by Pieter Hasekamp, the director for Central Planning Bureau – a leading economic policy research institute in the country.
The director says that the government should ban cryptocurrencies like bitcoin in their entirety before it is too late, and before a possible market crash that could affect the country badly. Tweet after another, crypto supporters have, however, sharply responded saying his economic theories on crypto appear “wild” and out of place.
“The ultimate step is a total ban on production, trading, and even possession of cryptocurrencies,” writes the director in his recent opinion on cryptocurrencies.
The director supports his call for a total crypto ban by pouring cold water on crypto, saying that they lack value, are a tool for criminals, and lack the intrinsic value of a currency. He says the so-called “cautious regulatory approach” by the government will make things worse by “legitimizing” crypto.
The director launches scathing attacks on cryptocurrencies saying they are worse than the “bad money” predicted by the popular Gresham’s law “bad money crowds out good money.” He says crypto won’t cut given it is a tool for criminals, the many scams, lack of value, lack of acceptance, insecurities reported around it.
The director’s remarks about crypto immediately drew the attention of many crypto lovers and supporters. Countless responses have criticized the director’s call for the Netherlands to ban crypto, calling his theories “weird.”
Product Innovation Specialist at Ledger hardware wallet, David El Silvador Rosa says the director only gave biased analyses of what cryptocurrencies truly are.
“It’s intellectually dishonest to blame Bitcoin and crypto assets for the financial instability caused by a crash,” tweeted Rosa. “The fiat system is marked by central banks keeping interest rates artificially low, causing a misallocation of capital which in turn leads to huge corrections.”
“The crashes are actually a good sign: it punishes those without conviction and rewards those that continue to buy at low prices. It also clears out the market from scams and coins that trade at much lower prices,” adds Rosa.
Rosa said the blame should be on Central Banks who move to print huge amounts of money to fund bailouts.
According to Rosa, the assertion that criminals use crypto is a myth that has been debunked a long time ago now. He says that the energy waste remarks about Bitcoin are worthless given that cryptocurrencies facilitate access to banks and other crypto benefits.
“Bitcoin’s energy usage is not a waste,” said Rosa. “If anything, it’s a massive social good enabling billions of people access to dependable money that cannot be inflated or censored by governments. If you don’t think that’s worth any energy, then don’t use it.”
Nothing about decentralization benefits
The director did not mention anything about the benefits of decentralization in his views. Yet many crypto pundits say crypto projects and tokens are an example of what a decentralized economy should look like – one that gives everyone easy access to banking, free from governmental control or censorship, and does not place an excessive transactional cost burden on citizens.
“Bitcoin’s volatility arises from its recent inception,” adds Rosa. “The majority of people don’t understand its decentralized nature and sound principles. Most discover it as a way to get rich fast. But the longer they study it, the more they focus on long-term accumulation.”