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How Bitcoin Could Prevent A Recession

 
How Bitcoin Could Prevent A Recession
Bitcoin / Breaking News
As reported by CCN, in a recent blog post called ‘Trump Is Right, the Fed Is Crazy,’ Ron Paul - the father of the current United States Senator Rand Paul - has blasted the federal reserve for manipulating interest rates. The now-retired US Congressman and ex Bitcoin sceptic, Ron Paul called for a tax exemption on all digital currencies saying that the move could prevent an economic recession. Paul wrote in the blog post:
“It is likely that the next Fed-created recession will come sooner rather than later. This could be the major catastrophe that leads to the end of fiat currency.”
According to Paul, the only way to avoid such a crisis is to give people the freedom to use the virtual currencies and to exempt “all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.” Paul said central banks are constantly increasing and decreasing the money supply to control the economy by controlling interest rates. He said that the Federal Reserve’s cyclical manipulation of interest rates actually gives fuel by creating an artificial economic boom.
“This can create an illusion of prosperity. Eventually, reality catches up to the Federal Reserve-created fantasies. When that happens, there is a recession or worse, leading the Fed to start the whole boom-and-bust cycle over again.”
Paul is a libertarian and opposes government intervention in the free market. This is a sentiment which is shared by many the crypto space who prefer the decentralised and unregulated market in which crypto operates in. Paul is also known for his criticisms of the President of the United States, Donald Trump. However, the President recently slated the Federal reserve, something of which Paul agreed with. True to his form, Paul also called for abolishing the Fed, saying a limited government and an economy that isn’t manipulated is much better for society. He said that “not only should we audit the Federal Reserve, but we should also get rid of it!” Back in December last year, Ron Paul was skittish on Bitcoin and staunch advocate on the gold standard. At the time the ex-congressman was surprised that one of his Twitter polls revealed that most of his followers would invest in Bitcoin over gold. You can see his tweet from last year here: What are your thoughts? Let us know what you think down below in the comments!

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