Ron Paul, a former Presidential candidate, and a Libertarian economist said that the taxation on Bitcoin and cryptocurrencies, in general, must be removed to prevent the recession that will happen due to the recent hike in interest rates by Federal Reserve.
Paul agrees with President Trump calling the Federal Reserve’s hike in interest rates ‘crazy’ and it is not the first time Paul has criticized the central bank. He says that the only way to end this ‘monetary madness’ is by forcing Congress to end this crisis.
Ron Paul, who served as a representative for more than a decade said in his blog post, ‘Trump Is Right, the Fed Is Crazy’:
“The first steps are passing the Audit the Fed bill, allowing people to use alternative currencies, and exempting all transactions in precious metals and cryptocurrencies from capital gains taxes and other taxes.”
He criticizes the Federal Reserve System saying that trusting in it is a ‘textbook definition’ of insanity being repeated over and over again hoping to get a different result. He added:
“The Federal Reserve System is as unworkable and doomed to failure as every other form of central planning.”
Paul, who ran for president in ’98 said that when not forced to use government created currency, people more often than not, have chosen gold, silver, and other precious metals as they are durable and stable and convey true value of goods over time.
Unlike the Winklevoss twins, Paul believes that cryptocurrencies and gold are mutually exclusive, and even wrote in another blog post saying:
“It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice. Different currencies may be used for certain transactions for efficiency reasons”
This would mean that the taxation on Bitcoin and other cryptocurrencies should be abolished to end the so-called ‘monetary madness’ that erupted due to the Federal Reserve’s hike in interest rates.
He conferred saying that the Federal Reserve created-recession will come “sooner rather than later” and that this could be a major catastrophe that would lead to the end of fiat currency.