Ron Paul, well-known Austrian Economist, recently wrote a paper about the issues economy faces nowadays. He believes that cryptocurrencies and precious metals can co-exist. Not only that, but it is recommended they co-exist in order to avoid monopolies.
Ron Paul – a popular libertarian
Ron Paul is a popular libertarian, who ran for president various times. He always had a different beliefs than the other politicians. Paul thinks that is “a fallacy to believe the U.S. has a free market economy”. His libertarian thinking influenced the other people. The famous economist believes that “a conglomerate of individuals and special interests control central economic planning“. In his opinion, the market is stronger than the manipulation on economic events. In his paper, “The Dollar Dilemma“, Paul highlights that there is solution for an efficient global economy. More precisely, the solution is the co-existence of cryptocurrencies and precious metals.
Cryptocurrencies & Gold
Paul questions whether cryptocurrencies or precious metals will offer a better system. Each type serves different needs: “Different currencies may be used for certain transactions for efficiency reasons“. The privacy, speed and storage method of cryptocurrencies can tilt the scale. The economist thinks that individuals are capable of discovering for themselves the advantages and disadvantages of cryptocurrencies and those of precious metals.
He believes that the right way to evaluate the situation is to be aware that “free people in the marketplace make the choice whether the use cryptos, absent the dictates of government and central banks”. However, the challenge consists in whether or not the government allows the choice. “It’s conceivable that cryptocurrencies, using blockchain technology, and a gold standard could exist together, rather than posing an either-or choice”, Paul said. According to Ron Paul’s paper, a system that combines gold and crypto is the most functional. Moreover, such a system will be easier to adapt to.
Source: https://news.bitcoin.com/cryptocurrencies-and-precious-metals-can-co-exist-explains-ron-paul/