FTX co-founder Sam Bankman-Fried has been sentenced to 25 years in jail, while Apple co-founder Steve Wozniak has won an appeal against YouTube for the use of his likeness in promoting cryptocurrency scams. This highlights the increasing accountability of crypto scammers and the platforms they use. However, as cryptocurrency gains popularity, more scams are expected to emerge. Criticizing Bitcoin as a regulatory approach only pushes more people into the hands of criminals. The author himself has been impersonated on social media, with criminals attempting to swindle funds from his followers and friends, but no progress has been made in catching them despite filing police reports and injunctions.
Regulators often focus on criticizing Bitcoin, but this is an ineffective approach. The European Central Bank, for example, claims that Bitcoin has failed as a global decentralized digital currency and is hardly used for legitimate transfers. However, this criticism lacks context. The approval of Bitcoin spot ETFs by the Securities and Exchange Commission does not make investing in Bitcoin entirely safe, but the institutional validation it brings through regulation adds legitimacy. The claim that Bitcoin’s fair value is “zero” because it didn’t fulfill its original promise is also misleading. Bitcoin still has value as an inflation hedge against fiat currencies.
The article also addresses the complaint about Bitcoin mining’s environmental impact without considering the energy consumption of Europe’s digital banking system. It fails to mention that Bitcoin miners have shifted to renewable energy sources and that other blockchains have reduced energy consumption significantly. The claim that Bitcoin is used for criminal activities like money laundering and terrorism is true to some extent, but Bitcoin’s transparency has actually helped catch criminals. The article also counters the claim that Bitcoin’s price is subject to manipulation and that it indicates a speculative bubble, providing examples of price manipulation in other markets.
The author argues that regulators need to take a balanced approach and recognize the potential and challenges of digital assets. Dismissing the entire sector based on attacks on Bitcoin is misleading and hinders consumers’ ability to be vigilant against scammers. Regulators should provide a wide view of the sector and educate consumers about the risks and benefits of digital assets. In conclusion, the author emphasizes the need for regulators to have a better understanding of the sector and provide a balanced voice to protect consumers and businesses.