Simply Bitcoin: Debunking White House Report on Bitcoin

While prices are showing one of the largest drawdowns in the cryptocurrency market in the past year, there are some healthy signs for the space. Adoption continues to grow. And companies are investing at a faster pace in the first three quarters of 2022 than in all of 2021.

It’s clear that crypto is here to stay, no matter what wild moves it makes in price. And as the space grows, there are growing calls for a regulatory framework.

That’s why the White House released a report on cryptocurrencies last week.

Cryptocurrencies can offer a way to separate money from governments. Governments prefer to have a monopoly on money. Government prefers to have ways to control the flow of where that money goes. That’s on top of being able to create money at will.

So it’s no surprise that the White House report has come out in favor of cryptocurrency polices that favor proof-of-stake over proof-of-work.

Proof-of-stake can be more environmentally friendly. And it’s being sold that way in the report. But it’s also easier to centralize and control. That goes against the ideas that led to the creation of cryptocurrencies in the first place.

The framework also sets the stage for a CBDC – central bank digital currency. Rather than have users choose from the myriad of cryptos available today, it would simply be the creation of a digital dollar, which could be controlled by the government at will.

Overall, the White House report is a game plan for how governments could try and control money in the digital era.

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