March 18, 2022 – 1:39 pm
In this episode of “Bitcoin Bottom Line,” the hosts and guest discuss the potential impact on Joe Biden’s crypto-related executive order.
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On this episode of “Bitcoin Bottom Line,” hosts Steven McClurg and C.J. Wilson were joined by Josh Olszewics from Valkyrie. They opened by discussing the new crypto executive order. Bitcoiners have been hearing about the possibility of a crypto-related executive order over the past few months and many have been pulling coins off of exchanges, CoinJoining and selling in preparation. After the release of the order, there was nothing that would majorly impact users and the price skyrocketed.
Wilson asked for McClurg’s perspective on if this is a positive or negative sign for the market. McClurg explained that any time there is a sideways market and the macro perspective is not great but things have not yet gone down, the news cycle has complete control over the price. Historically, many people have traded based on the news and this continues today.
The trio went on to discuss Senator Elizabeth Warren’s letter to the United States Treasury. The letter stated how crypto could be used as a weapon against sanctions, especially in Russia. McClurg brought up how gas prices are not refutable; they are higher on the West Coast due to less efficient transportation. Only roughly 3% of all U.S. oil comes from Russia and much of the rest is from the Middle East, therefore it should not have a 40% to 50% effect that has been seen over the last year. The reason for this increase is due to inflation as well as self-interest and lack of competition.
“There is an opportunity to charge more, therefore they will.” McClurg stated. Wilson added in, “It goes back to Adam Smith’s economic principles, if you eliminate competition then self interest goes up. Similarly, if you eliminate supply, then demand will increase because self-interest is tied to demand and creates consumer competition.”
They circled back to discussing the executive order. Olszewics stated that the order was tamer than anticipated and that it opens a door to start seriously talking about crypto. Wilson stated that the fear was far greater than the reality. McClurg brought up the specifics from the executive order and said, “Number one is to protect U.S. consumers and businesses, through which they are trying to reduce systematic risk… bitcoin will eventually look like real estate. It is property, not security and many other trade associations will make sure there is no fraud.”
One of the other topics that he found interesting was the fact that the order seeks to, “promote U.S. leadership in technology and economic competitiveness, which is what individual states are attempting.”
The group wrapped up the episode by talking about politicians finally increasing their knowledge on cryptocurrency and the excitement to see one another in Bitcoin Miami. Listen to the full episode!