Are Presidential Candidates Clueless about Bitcoin and the New Economy?
The world economy is undergoing one of the biggest transformations ever. This transformation is being driven by the Internet of Things and new disruptive technologies, such as Bitcoin and its underlying blockchain technology. The impact of this change will be all encompassing and dramatic, affecting governance, businesses, and even our way of life. However, candidates in the race for their party’s 2016 presidential nomination do not seem to grasp the immensity of these changes. Most candidates have so far omitted to mention in their respective economic platforms anything related to this formidable economic revolution.
China’s Central Bank Is Going Digital
Extraordinary events are occurring that are challenging the existing core societal and economic systems. Specifically, the digital programmable currency, Bitcoin, and its blockchain technology are disrupting the obsolete monetary and banking system.
As a result, Satoshi Nakamoto, the anonymous creator of Bitcoin and its blockchain technology has been proposed as a candidate for the 2016 Nobel Prize in Economics Sciences.
Only Bitcoin and gold have the characteristics of perfect money: scarcity, durability, divisibility, transferability, recognizability, and fungibility. Moreover, Bitcoin is superior to gold as it has perfect portability, affirms Travis Patron, founder at Diginomics.
Thus, it is within the realm of possibility that Bitcoin could eventually become the reserve for digital currencies globally, said Bobby Lee, CEO of BTCC, the first Bitcoin exchange in China. “Bitcoin’s blockchain can be the global anchor (proof-of-work chain) for all nationally created digital currencies,” Lee affirms.
Coincidentally, China’s central bank has recently announced that it is studying the implementation of its own digital currency. As reported by Reuters, “China’s central bank wants to launch its own digital currencies to cut the costs of circulating traditional paper money and boost policymakers’ control of money supply, the People’s Bank of China (PBOC) said on Wednesday.”
All this is happening while the world might be sinking into recession.
Global Recession Looming?
The world is in turmoil. Investors are fearful as oil and commodity prices continue to decline, and China’s economic growth continues to decelerate. And the value of emerging countries’ currencies, including Russia, China, and Brazil currencies continues to shrink, reports CNN.
Some economists even believe that the U.S. might also be falling into a recession. “The chance of the U.S. sinking into a full-blown recession now stands at 18%,” according to a recent CNNMoney survey of economists. In addition, “Citigroup predicted a 65% chance of a U.S. recession.”
Meanwhile, other economists, like Mohamed A. El-Erian, Chief Economist at Allianz, are starting to wonder when the U.S. presidential candidates will start talking about the economy.
Candidates’ Economic Proposals: Nothing New
For several months, we have been listening to the contenders for the U.S. presidential nomination trying to convince us that their economic programs are the best to lift the U.S. economy.
Today’s challenges require bold, visionary ideas. Fortunately, Bitcoin, the Internet of Things, and other amazing technologies are here to help to turn these new imaginative ideas into reality.
However, candidates seem oblivious of the potential and opportunities that these new technologies are offering. None of their proposals are inspirational and visionary enough to benefit from these opportunities.
We have not heard candidates mentioning Bitcoin, except for Rand Paul and John McAfee. They both recognize and accept Bitcoin donations. In this regard, Ryan Connolly, Bitcoin advocate, has asked Trump why he does not accept Bitcoin donations, and urged him to promote Bitcoin as America’s new currency to “make America great again.” Trump has not responded yet.