Pierre Rochard, VP of Research at Riot Platforms, responded to criticism against Senator Cynthia Lummis' (R-Wyo.) recently introduced BITCOIN Act, which aims to strengthen the U.S. dollar and help reduce the nation’s rapidly increasing debt.
What Happened: In a YouTube video aired Tuesday, Rochard defended the legislation and presented arguments against some of the common objections to the idea of a strategic Bitcoin BTC/USD reserve.
To criticisms directed towards the inherent assumption that the leading cryptocurrency would increase in value, Rochard said that the belief stems from Bitcoin's fundamentals and the fact that it has increased in value in the last 15 years.
"Not only has nothing changed in the negative, but nothing has gotten worse about Bitcoin. Bitcoin has only improved, so if anything, I’m more bullish on the next 20 years," he argued.
The other counterargument was to use stockpiles of utility, such as oil or medicine. In response, Rochard stated that Bitcoin’s utility stemmed from its unique characteristics, such as its decentralized nature, which prevents transfer disruptions, and immunity to foreign sabotage.
Another major complaint was that a reserve would imply government control over Bitcoin, thereby compromising its essential principles. Rochard described this as a misunderstanding of how the apex cryptocurrency works, explaining that the government can control its own private keys and nodes but not other people’s private keys.
Why It Matters: The proposed law by Lummis advocates the implementation of a $1 million purchase program to acquire 5% of the total supply of the apex cryptocurrency over a 5-year period.
The bill also outlined that no Bitcoins held in the reserve should be sold or auctioned for a minimum holding period of 20 years.
Former President Donald Trump has also expressed support for a national Bitcoin stockpile, noting in one of the interviews that it could be used to "wipe out" $35 trillion worth of U.S. debt.
The reaction to the legislation has been divided, with influential economist Justin Wolfers being one of the most vocal critics.
Price Action: At the time of writing, Bitcoin was exchanging hands at $61,019.12, up 3.27% in the last 24 hours, according to data from Benzinga Pro.
Photo Courtesy: Wikimedia Commons
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