If it’s up to US Senator Jon Tester, there’s no reason crypto should exist. The Democrat was a guest on the Meet the Press program on December 11, where he argued, among other things, that crypto has no real value. According to the senator, it is important that legislation is passed for the industry, so that it at least gets some legitimacy.
Nobody can explain it to me
It seems that Jon Tester, who has served as a senator since 2007, actually believes there is no value in crypto. “The problem with regulating it is that it creates the possibility for people to think it’s real. I see no reason why this stuff should exist at all,” said Tester.
Somehow it is strange that Tester speaks about the industry in this way. If you just look at Bitcoin, it’s easy to pinpoint the value. Bitcoin has an absolute scarcity of 21 million units, which you can send anywhere in the world within 10 minutes for a few cents in transaction costs.
Put the absolute scarcity of Bitcoin next to the scarcity of the US dollar and you immediately understand that it can be an interesting means of savings. It’s hard to deny that many people have been damaged by using the dollar as a means of saving. The US dollar is fine as a means of payment, but keeping it in a savings account for years is not a good idea.
It’s an alternative
Bitcoin was born as an alternative to the craziness of the traditional financial system. Most people who are fully into Bitcoin want to break away from that system. The endless money printing that takes place in the traditional financial system makes it difficult to understand what you really own. Even companies for companies that make a profit, you have to correct the numbers for inflation first to make sure it’s real profit.
Suppose a baker starts the year with $100 in reserves. After a year of baking and selling bread, reserves have risen to $105, but inflation is 10 percent. Did the baker actually make a profit?
On paper, he is $5 richer than last year, but his purchasing power has declined. In the end, it’s about purchasing power and not about the number of dollars you own. The endless printing of money in the traditional financial system makes it difficult to distinguish real from fake. That is why Bitcoin can be a valuable asset for people who want security. If you buy 1 Bitcoin, it will always be 1 out of 21 million Bitcoin.