Retired US Congressman Believes Cryptocurrency Could Prevent Recession

Ron Paul, who at one time in life was a bitcoin skeptic, in today’s crypto news we find out the complete opposite of those beliefs. The ex-US Congressman said that he believes cryptocurrencies to be the perfect tool in order to prevent the next economic recession.

He called for a tax exemption on cryptocurrencies and made this suggestion in a blog post ‘’Trump Is Right, The Fed Is Crazy’’ where he explains how the Federal Reserve is manipulating the interest rates.

 “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,’’ says Paul in the blog post.

According to him, the only way to bypass a crisis is to allow people to use cryptocurrencies and to exempt them from capital gains taxes and other taxes as well. Also, the banks constantly change the money supply in order to control the interest rates thus the entire economy.

While speaking about the Federal Reserve and the manipulation of interest rates, he explains how these actions boost recessions by creating an artificial economic increase. This comes as no surprise since Ron Paul is a libertarian and opposes any intervention from the government in the free market.  This is why he also called for getting rid of the Fed.

The ex-US Congressman was a firm bitcoin skeptic but changed his mind when he found out the nearly half of his followers that use Twitter would more likely invest in Bitcoin. He then said that Bitcoin is very exciting at that time, but gold is a better option long-term. However, now he believes that bitcoin and any other gold-backed currency should co-exist in the free market.