Cryptocurrency

Ron Paul: “US Dollar is Designed to be Vulnerable to Inflation”


He once ran for the US President’s chair from Congress and now, Ron Paul is staying as a critic of the Federal Reserve and Quantitative Easing (QE), which the Fed believes to be a solution to a lot of international problems.

In a recent interview with Bitcoin Magazine, Paul said that Bitcoin could be a find substitutions to the US dollar which the Fed has turned into a bubble.

The fall of USD

Ron Paul and the Libertarian party seem to believe that he was partly provided with the foundation for emerging of decentralised digital coins like Bitcoin. Libertarians stand for freedom in all aspects of life and they are sceptical about full trust in governmental authorities.

Paul has been a big critic of the Federal Reserve system for a long time, believing that this US Central Bank is pushing the nation towards some serious economic issues.

So what happens is USD does fall?

Paul claims that Bitcoin would be a perfect alternative to USD and other fiat currencies back by governments. When he was asked on Bitcoin volatility, he said:

“Now, we have the digital currencies and I think they’ll follow the same economic laws, but there is going to be a subjective element to it. You can’t deny that there was some subjectivity when bitcoin hit $20,000. But does that mean it’s worthless? No, I don’t think so — things do that. This is new, so it’s going to have ups and downs.”

Paul says that with each new QE (when more money is printed), the dollar loses value and so the fiat is designed to be vulnerable to inflation, according to him.

With Bitcoin, he said that since it was created over ten years ago, the currency avoids inflation thanks to each ‘halving’ that it experiences.

As reported by u.today:

“Paul seems to respect the idea of Bitcoin so much, that he even accepted BTC donations for his 2015 US presidential campaign and still does accepts them to fund his political work and that of his son, Rand Paul.”



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