Ron Paul, a retired US Congressman and one-time Bitcoin skeptic, called for a tax exemption on all cryptocurrencies. Ron Paul said this saying that exempting cryptocurrencies from taxes could prevent an economic recession. Is Ron Paul cryptofriendly ? What do you think?
The father of current United States Senator Rand Paul, Ron made the suggestion in his blog post called: “Trump is Right, the Fed is Crazy”. Ron Paul blasted the Federal Reserve for manipulating interest rates in his post.
“It is likely that the next Fed-created recession will come sooner rather than later,” Paul wrote. “This could be the major catastrophe that leads to the end of fiat currency.”
Ron Paul said that the only way to avoid this self-inflicted recession is to allow people to use alternative currencies and to exempt “all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
Ron Paul said that central banks constantly increase and decrease the money supply to control the economy by controlling interest rates. He has said that this manipulation, particularly the Federal Reserve’s actions, is what actually fuels recessions by creating artificial economic booms.
“This can create an illusion of prosperity,” he wrote. “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.”
Ron Paul, a libertarian, espouses typical Libertarian values, such as opposing government intervention in the free market. This sentiment is shared amongst many in the cryptocurrency community. This is due to the very decentralized and unregulated market that crypto can and does operate in.
Ron Paul, while a critic of President Trump, agreed with Trump’s recent criticism of the Fed. Paul has also called for abolishing the Fed. He claims: “Not only should we audit the Federal Reserve; we should get rid of it!”
Even a year ago, Ron Paul was a Bitcoin skeptic and a staunch supporter of the return of the gold standard. Ron Paul tweeted in December in 2017, writing: “A wealthy person wants to gift you $10,000. You get to choose which form you’ll take the gift. But there’s a catch: you must keep the gift in the form that you choose, and you can’t touch it for 10 years. In which form would you take the gift?”
Ron Paul was not expecting more than half of the respondents chose Bitcoin rather than gold. Remarking on his informal Twitter poll: “Bitcoin is very exciting, and it’s booming, but [Bitcoin investors] don’t have a long-term perspective. What’s it going to be like in 10 years? Nobody knows. But we have a pretty good idea of where gold will be, in a general sense.”
Nearly a year later, Ron Paul has changed his tune. He now believes that Bitcoin and a gold-backed currency can co-exist in a truly free society.
As an aside, maybe his son was more of a Crypto bull than his dad – Senator Rand Paul accepted Bitcoin contributions when he ran for president in 2016. He was the first US presidential candidate to accept Bitcoin to fund a presidential campaign.
What do you think? Do you think Ron Paul is right? We’ll soon have ATMs that will allow you to buy Bitcoin! Bitcoin just celebrated 10 years, where will we be in 10 years? Let us know on our Facebook page!
